Part 8Former employees: deductions for liabilities
Deductions from total income
557Deductible payments wholly or partly borne by the former employer etc.
1
This section applies if—
a
a deductible payment is made by the former employee (and not by the former employer on behalf of the former employee), but
b
the whole or a part of the cost of making the payment is borne—
i
by the former employer, or
ii
out of the proceeds of a contract of insurance.
2
No deduction of the amount of the cost borne as mentioned in subsection (1)(b) (the “relevant amount”) may be made under section 555.
3
But this is subject to subsection (4) if the whole or a part of the relevant amount is treated—
a
as a relevant retirement benefit of the former employee, or
b
as post-employment earnings of the former employee.
4
In such a case, a deduction of so much of the relevant amount as is treated in that way may be made under section 555.