Part 2

Trading income
Chapter 5

Trade profits: rules allowing deductions

Redundancy payments etc.

Payments in respect of employment in more than one capacity
78
1
This section applies if the payment is in respect of the employee's employment with the employer—
a
partly in the employer's trade, and
b
partly in one or more other capacities.
2
The amount of the redundancy payment, or the amount which would have been due if a redundancy payment had been payable, is to be apportioned on a just and reasonable basis between—
a
the employment in the trade, and
b
the employment in the other capacities.
3
The part of the payment apportioned to the employment in the trade is treated as a payment in respect of the employee's employment wholly in the trade for the purposes of section 77.