Related Commentary  Related CasesRelated HMRC Manuals

225(1)  This section applies where–

(a)an individual gives a restrictive undertaking in connection with the individual's current, future or past employment, and

(b)a payment is made in respect of–

(i)the giving of the undertaking, or

(ii)the total or partial fulfilment of the undertaking.

225(2)  It does not matter to whom the payment is made.

225(3)  The payment is to be treated as earnings from the employment for the tax year in which it is made.

225(4)  Subsection (3) does not apply if the payment constitutes earnings from the employment by virtue of any other provision.

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