Corporation Tax Act 2009

37 After section 76ZF insert—

“76ZG Payments in respect of employment wholly in employer’s business

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

(2) The payment is treated as expenses payable which fall to be brought into account at Step 1 in section 76(7), so far as it otherwise would not be.

(3) The amount brought into account 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 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.”