Section 299A ITEPA 2003

As shown at EIM01120, for periods up to 5 April 2018 HMRC allowed payments of financial loss allowance (FLA) that compensated for loss of earnings to be exempt from income tax by extra-statutory concession.

From 6 April 2018, section 299A of ITEPA 2003 provides a statutory exemption from income tax on payments made to voluntary office-holders where those payments are made solely to compensate the person for lost employment income.

The exemption applies where:

a person holds a voluntary office with a relevant authority

they carry out duties of the office in a period in which they are also employed

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