EIM30532 - Deductions: directors’ and officers’ liabilities: relief for ex-employees: relief for "excess" liabilities

Section 555(6) ITEPA 2003

If the deduction due for a year under Section 555(6) ITEPA 2003 exceeds the ex-employee's total income in that year the excess is treated for capital gains tax purposes as an allowable loss accruing for that year.

However, that loss can be used only to off-set the excess (if any) of actual gains arising over losses incurred in the year (see CG15803).