Section 1239 — Corporation Tax Act 2009: Redundancy payments and approved contractual payments

Redundancy payments and approved contractual payments 1239 1 Sections 1240 to 1242 apply if—

a a company with investment business (“ the employer ”) makes a redundancy payment or an approved contractual payment to another person (“ the employee ”),

b the payment is in respect of the employee's employment wholly in the employer's investment business or partly in the employer's investment business and partly in one or more other capacities, and c expenses of management of the business are deductible under section 1219.

2 For the purposes of this section and sections 1240 to 1243 “ redundancy payment ” means a redundancy payment payable under—

a Part 11 of the Employment Rights Act 1996 (c. 18), or b Part 12 of the Employment Rights (Northern Ireland) Order 1996 (S.I. 1996/1919 (N.I. 16)).

3 For the purposes of this section and those sections— “ contractual payment ” means a payment which, under an agreement, an employer is liable to make to an employee on the termination of the employee's contract of employment, and a contractual payment is “approved” if, in respect of that agreement, an order is in force under— section 157 of the Employment Rights Act 1996, or Article 192 of the Employment Rights (Northern Ireland) Order 1996 (S.I. 1996/1919 (N.I. 16)).