EIM70400 - Tax treatment of steel industry employees: redundancies
Steel Industry employees may be entitled to payments under
schemes set up by the European Community (Iron and Steel Employees
Re-adaptation Benefits Scheme).
The tax treatment of these payments is as follows:
Type of payment |
Tax treatment |
| Payments to the employed, self-employed or unemployed. | Taxable as employment income. |
| Payments during retraining. | Taxable only under Section 403 ITEPA 2003. |
| Grants to employees who are transferred. | Taxable as employment
income but exemption for the first £8,000 of expenses may be
available under Section 271 ITEPA 2003 (see
EIM03103 and subsequent guidance).
|
