SCHEDULES

SCHEDULE 1 U.K. Minor and consequential amendments

Part 1 U.K. Income and Corporation Taxes Act 1988

31 U.K. After section 76 insert—

“Payments for restrictive undertakings U.K.

76ZA Payments for restrictive undertakings

(1) This section applies if a payment—

(a) is treated as earnings of an employee by virtue of section 225 of ITEPA 2003 (payments for restrictive undertakings), and

(b) is made, or treated as made for the purposes of section 226 of that Act (valuable consideration given for restrictive undertakings), by a company in relation to which section 76 applies.

(2) The payment is treated as expenses payable which fall to be brought into account at Step 1 in section 76(7), so far as it otherwise would not be.”