Section 226 — Income Tax (Earnings and Pensions) Act 2003: Valuable consideration given for restrictive undertakings

Valuable consideration given for restrictive undertakings 226 1 In a case where—

a an individual gives a restrictive undertaking in connection with the individual’s current, future or past employment, and b valuable consideration that is not in the form of money is provided in respect of—

i the giving of the undertaking, or ii the total or partial fulfilment of the undertaking, section 225 applies as it would if a payment of an amount equal to the value of the consideration had been made instead.

2 For this purpose—

a merely assuming an obligation to make over or provide valuable property, rights or advantages is not valuable consideration, but b wholly or partially discharging such an obligation is.