B2.469 Restrictive covenantsOften, an employer will pay an employee (or a former employee) an amount to prevent the employee from carrying out a particular action. For example, this might include working for a rival organisation, or approaching customers or clients of the employer or former employer. Such payments are taxed on the employee under ITEPA 2003, s 225 (see E4.481).If such a payment is made or treated as made for the purposes of ITEPA 2003, s 226 in respect of the trade, ta deduction is available for the period of account in which the payment is made, or treated
Often, an employer will pay an employee (or a former employee) an amount to prevent the employee from carrying out a particular action. For example, this might include working for a rival organisation, or approaching customers or clients of the employer or former employer. Such payments are taxed on the employee under ITEPA 2003, s 225 (see E4.481).
If such a payment is made or treated as made for the purposes of ITEPA 2003, s 226 in respect of the trade, ta deduction is available for the period of account in which the payment is made, or treated
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