Part 2

Trading income
Chapter 5

Trade profits: rules allowing deductions

Payments for restrictive undertakings

Payments for restrictive undertakings
69
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 person carrying on the trade.
2
The deduction is allowed for the period of account in which the payment—
a
is made, or
b
is treated as made for the purposes of section 226 of ITEPA 2003.