EIM30530 - Deductions: directors’ and officers’ liabilities: relief for ex- employees
Section 555 ITEPA 2003
Section 555 ITEPA 2003 provides for deductions from total income for ex- employees' uninsured liabilities:
- that they themselves have to bear and
- that are not deductible under Section 346 ITEPA 2003 (see EIM30501 onwards) but would be so deductible if the ex-employee had:
- continued to hold the office or employment in respect of which the liability arose and
- met the liability out of the earnings of that office or employment.
The provisions also effectively cancel out charges under:
- Part 6 Chapter 2 ITEPA 2003 (benefits from non-approved or employer-financed pension schemes) and
- Part 6 Chapter 3 (payments, including `valuable consideration' provided in connection with the termination of an employment)
where the charge would arise as a result of someone other than the employee
