This Practice Note looks at the tax treatment of section 75 debts/employer debts/statutory debts and the extent to which such payments are ‘wholly and exclusively for the purposes of the trade’ when paid by UK registered companies. This Practice Note also looks at the deductibility of tax payments under apportionment and withdrawal arrangements, the timing issues involved in making tax deductions of this nature, and the specific ways of dealing with the tax issues arising on the sale of a subsidiary in a multi-employer scheme when a section 75 debt is triggered.