Commentary

(d) Only where employer pays costs

Division BII Taxation of Employment Income
| Commentary

(d) Only where employer pays costs

| Commentary

(d)     Only where employer pays costs

First, it takes legal costs which are paid by the employer out of the 'termination payments' charge imposed by ITEPA 2003 s 401 et seq. If the employer does not make any payment of costs there is no room for the statutory provision to operate; it does not provide a tax deduction for the employee's own legal costs in the absence of payment of those costs by the employer.

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