C1Part 3Trading income

Annotations:
Modifications etc. (not altering text)

Chapter 5Trade profits: rules allowing deductions

Payments for restrictive undertakings

69Payments for restrictive undertakings

1

In calculating the profits of a trade, a deduction is allowed for a payment—

a

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

b

which is made, or treated as made for the purposes of section 226 of that Act (valuable consideration given for restrictive undertakings), by the company carrying on the trade.

2

The deduction is allowed for the accounting period in which the payment—

a

is made, or

b

is treated as made for the purposes of section 226 of ITEPA 2003.