EIM03602 | Restrictive covenants: consideration taxable as general earnings

Section 225 ITEPA 2003

Treatment of payments for entering into restrictive covenants

Payments made for entering into restrictive covenants may constitute earnings, or may be treated as earnings (see EIM00511) pursuant to s225 ITEPA 2003 (see EIM03601.).

If s225 applies, the employee or office holder will be taxed on the whole amount received in the year of assessment