Section 410 — Income Tax (Earnings and Pensions) Act 2003: Exception for payments and benefits in respect of certain legal expenses etc and indemnity insurance: individual deceased

Exception for payments and benefits in respect of certain legal expenses etc and indemnity insurance: individual deceased 410 1 This Chapter does not apply to a payment or other benefit received by an individual’s personal representatives if or to the extent that—

a in the case of a cash benefit, it is provided for meeting the cost of a deductible amount, or b in the case of a non-cash benefit, it is or represents a benefit equivalent to the cost of paying a deductible amount.

2 For the purposes of this section “ deductible amount ” means an amount which meets conditions A to C.

3 Condition A is that the amount is paid by the individual’s personal representatives or by the former employer on behalf of the individual's personal representatives .

4 Condition B is that a deduction for the amount would have been allowed under section 346 from earnings from the relevant employment, if—

a the individual had not died, b the amount had been paid by the individual, and c the individual still held the employment when the amount was paid.

5 Condition C is that the amount is paid at a time which falls within the run-off period.