Section 409 | Exception for payments and benefits in respect of certain legal expenses etc and indemnity insurance

(1)This Chapter does not apply to a payment or other benefit received by an individual if or to the extent that—

(a)in the case of a cash benefit, it is provided for meeting the cost of a deductible amount, or

(b)in the case of a non-cash benefit, it is or represents a benefit equivalent to the cost of paying a deductible amount.

(2)For the purposes of this section “deductible amount” means an amount which meets conditions A to C.

(3)Condition A is that the amount is paid by the individual or by the employer or former employer on behalf of the individual.^F1

(4)Condition B is that a deduction for the amount would have been allowed under section 346 from earnings from the relevant employment, if the individual still held the employment when the amount was paid.

(5)Condition C is that the amount is paid at a time which falls within the run-off period.

(6)In this section and section 410—