(10) Legal costs(a) Costs as a taxable paymentAs already mentioned, the charge to tax under ITEPA 2003 s 401 is very widely drafted. It is wide enough to charge to income tax not only a payment of damages or compensation, but also a payment of legal costs made by an employer to an employee even in circumstances where the costs had to be expended in order to obtain the damages or compensation.
As already mentioned, the charge to tax under ITEPA 2003 s 401 is very widely drafted. It is wide enough to charge to income tax not only a payment of damages or compensation, but also a payment of legal costs made by an employer to an employee even in circumstances where the costs had to be expended in order to obtain the damages or compensation.
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