Part 16 U.K. Companies with investment business

Chapter 3 U.K. Amounts treated as expenses of management

Redundancy payments etc U.K.

1240 Payments in respect of employment wholly in employer's business U.K.

(1) This section applies if the payment is in respect of the employee's employment wholly in the employer's investment business.

(2) The amount of the payment is treated for the purposes of Chapter 2 as expenses of management.

(3) The deduction allowable by virtue of this section for an approved contractual payment must not exceed the amount which would have been due to the employee if a redundancy payment had been payable.

(4) If the payment is referable (see sections 1224 to 1227) to an accounting period beginning after the business has permanently ceased to be carried on, it is treated as referable to the last accounting period in which the business was carried on.

Modifications etc. (not altering text)

C1 Ss. 1238-1242 applied (with effect in accordance with s. 148 of the amending Act) by Finance Act 2012 (c. 14), s. 81(2)(3)(7) (with s. 147, Sch. 17)