C1Part 3Trading income

Annotations:
Modifications etc. (not altering text)

Chapter 5Trade profits: rules allowing deductions

Redundancy payments etc

76Redundancy payments and approved contractual payments

1

Sections 77 to 79 apply if—

a

a company (“the employer”) makes a redundancy payment or an approved contractual payment to another person (“the employee”), and

b

the payment is in respect of the employee's employment wholly in the employer's trade or partly in the employer's trade and partly in one or more other capacities.

2

For the purposes of this section and sections 77 to 81 “redundancy payment” means a redundancy payment payable under—

a

Part 11 of the Employment Rights Act 1996 (c. 18), or

b

Part 12 of the Employment Rights (Northern Ireland) Order 1996 (S.I. 1996/1919 (N.I. 16)).

3

For the purposes of this section and those sections—

  • “contractual payment” means a payment which, under an agreement, an employer is liable to make to an employee on the termination of the employee's contract of employment, and

  • a contractual payment is “approved” if, in respect of that agreement, an order is in force under—

    1. a

      section 157 of the Employment Rights Act 1996, or

    2. b

      Article 192 of the Employment Rights (Northern Ireland) Order 1996.