Part 3Employment income: earnings and benefits etc. treated as earnings

Chapter 12Payments treated as earnings

226Valuable consideration given for restrictive undertakings

1

In a case where—

a

an individual gives a restrictive undertaking in connection with the individual’s current, future or past employment, and

b

valuable consideration that is not in the form of money is provided in respect of—

i

the giving of the undertaking, or

ii

the total or partial fulfilment of the undertaking,

section 225 applies as it would if a payment of an amount equal to the value of the consideration had been made instead.

2

For this purpose—

a

merely assuming an obligation to make over or provide valuable property, rights or advantages is not valuable consideration, but

b

wholly or partially discharging such an obligation is.