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Legislation
Income Tax (Trading and Other Income) Act 2005

Crossheading Redundancy payments etc.

  • Section 76 Redundancy payments and approved contractual payments
  • Section 77 Payments in respect of employment wholly in employer's trade
  • Section 78 Payments in respect of employment in more than one capacity
  • Section 79 Additional payments
  • Section 79A Additional payments: change in the persons carrying on the trade
  • Section 80 Payments made by the Government
  1. Redundancy payments etc.
  2. Payments in respect of employment in more than one capacity

Section 78 | Payments in respect of employment in more than one capacity

From legislation.gov.uk

(1)This section applies if the payment is in respect of the employee's employment with the employer—

(a)partly in the employer's trade, and

(b)partly in one or more other capacities.

(2)The amount of the redundancy payment, or the amount which would have been due if a redundancy payment had been payable, is to be apportioned on a just and reasonable basis between—

(a)the employment in the trade, and

(b)the employment in the other capacities.

(3)The part of the payment apportioned to the employment in the trade is treated as a payment in respect of the employee's employment wholly in the trade for the purposes of section 77.

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