Part 6

Employment income: income which is not earnings or share-related
Chapter 3

Payments and benefits on termination of employment etc.

Exceptions and reductions

Exception for payment of certain legal costs
413A
1
This Chapter does not apply to a payment which meets conditions A and B.
2
Condition A is that the payment meets the whole or part of legal costs incurred by the employee exclusively in connection with the termination of the employee’s employment.
3
Condition B is that either—
a
the payment is made pursuant to an order of a court or tribunal, or
b
the termination of the employee’s employment results in a
settlement
agreement between the employer and the employee and —
i
the
settlement
agreement provides for the payment to be made by the employer, and
ii
the payment is made directly to the employee’s lawyer.
4
In this section—
...
- “lawyer” has the same meaning as “qualified lawyer” in section 203(4) of the Employment Rights Act 1996 or article 245(4) of the Employment Rights (Northern Ireland) Order 1996;
- “legal costs” means fees payable for the services and disbursements of a lawyer.
S. 413A inserted (with effect in accordance with art. 10(4) of the amending S.I.) by The Enactment of Extra-Statutory Concessions Order 2011 (S.I. 2011/1037), arts. 1, 10(3)
Words in s. 413A(4) omitted (1.3.2013) by virtue of The Enactment of Extra-Statutory Concessions Order 2013 (S.I. 2013/234), arts. 1, 3(1)(b) (with art. 3(2))
Word in s. 413A(3)(b) substituted (1.3.2013) by The Enactment of Extra-Statutory Concessions Order 2013 (S.I. 2013/234), arts. 1, 3(1)(a) (with art. 3(2))