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Legislation
Income Tax (Earnings and Pensions) Act 2003

Crossheading Exceptions and reductions

  • Section 405 Exception for certain payments exempted when received as earnings
  • Section 406 Exception for death or disability payments and benefits
  • Section 407 Exception for payments and benefits under tax-exempt pension schemes
  • Section 408 Exception for contributions to registered pension schemes
  • Section 409 Exception for payments and benefits in respect of certain legal expenses etc and indemnity insurance
  • Section 410 Exception for payments and benefits in respect of certain legal expenses etc and indemnity insurance: individual deceased
  • Section 411 Exception for payments and benefits for forces
  • Section 412 Exception for payments and benefits provided by foreign governments etc.
  • Section 413 Exception in certain cases of foreign service
  • Section 413A Exception for payment of certain legal costs
  • Section 414 Reduction in other cases of foreign service
  • Section 414A Exception for payments and benefits under section 615(3) schemes
  • Section 414B Exception in certain cases of foreign service as seafarer
  • Section 414C Reduction in other cases of foreign service as seafarer
  1. Exceptions and reductions
  2. Exception for payment of certain legal costs

Section 413A | Exception for payment of certain legal costs F1

From legislation.gov.uk

(1)This Chapter does not apply to a payment which meets conditions A and B.F1

(2)Condition A is that the payment meets the whole or part of legal costs incurred by the employee exclusively in connection with the termination of the employee’s employment.F1

(3)Condition B is that either—F1

(a)the payment is made pursuant to an order of a court or tribunal, orF1

(b)the termination of the employee’s employment results in a settlement agreement between the employer and the employee and —F1F2

(i)the settlement agreement provides for the payment to be made by the employer, andF1F2

(ii)the payment is made directly to the employee’s lawyer.F1

(4)In this section—F1

“lawyer” has the same meaning as “qualified lawyer” in section 203(4) of the Employment Rights Act 1996 or article 245(4) of the Employment Rights (Northern Ireland) Order 1996;

“legal costs” means fees payable for the services and disbursements of a lawyer.

Notes

  1. F1

    S. 413A inserted (with effect in accordance with art. 10(4) of the amending S.I.) by The Enactment of Extra-Statutory Concessions Order 2011 (S.I. 2011/1037), arts. 1, 10(3)

  2. F2

    Word in s. 413A(3)(b) substituted (1.3.2013) by The Enactment of Extra-Statutory Concessions Order 2013 (S.I. 2013/234), arts. 1, 3(1)(a) (with art. 3(2))

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