Commentary

B2.469 Restrictive covenants

Business tax
Business tax | Commentary

B2.469 Restrictive covenants

Business tax | Commentary

B2.469 Restrictive covenants

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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