Part 2

Trading income
Chapter 5

Trade profits: rules allowing deductions

Redundancy payments etc.

Redundancy payments and approved contractual payments
76
1
Sections 77 to 79 apply if—
a
a person (“the employer”) makes a redundancy payment or an approved contractual payment to another person (“the employee”), and
b
the payment is in respect of the employee's employment wholly in the employer's trade or partly in the employer's trade and partly in one or more other capacities.
2
For the purposes of this section and sections 77 to 80 “redundancy payment” means a redundancy payment payable under—
a
Part 11 of the Employment Rights Act 1996 (c. 18), or
b
Part 12 of the Employment Rights (Northern Ireland) Order 1996 (S.I. 1996/1919 (N.I. 16)).
3
For the purposes of this section and those sections—
- “contractual payment” means a payment which, under an agreement, an employer is liable to make to an employee on the termination of the employee's contract of employment, and
- a contractual payment is “approved” if, in respect of that agreement, an order is in force under—
  1. section 157 of the Employment Rights Act 1996, or
  2. Article 192 of the Employment Rights (Northern Ireland) Order 1996.