| Commentary

(a) Costs as a taxable payment

| Commentary

(10)     Legal costs

(a)     Costs as a taxable payment

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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