EIM70400 | Tax treatment of steel industry employees: redundancies
From HM Revenue & Customs · Employment Income Manual
Steel Industry employees may be entitled to payments under schemes set up by the European Community (Iron and Steel Employees Re-adaptation Benefits Scheme).
The tax treatment of these payments is as follows:
| Type of payment | Tax treatment |
|---|---|
| Payments to the employed, self-employed or unemployed | Taxable as employment income |
| Payments during retraining | Taxable only under section 403 ITEPA 2003 |
| Grants to employees who are transferred | Taxable as employment income but exemption for the first £8,000 of expenses may be available under section 271 ITEPA 2003 (see EIM03103 and subsequent guidance) |