Section 557 — Income Tax (Earnings and Pensions) Act 2003: Deductible payments wholly or partly borne by the former employer etc.

Deductible payments wholly or partly borne by the former employer etc. 557 1 This section applies if—

a a deductible payment is made by the former employee (and not by the former employer on behalf of the former employee), but b the whole or a part of the cost of making the payment is borne—

i by the former employer, or ii out of the proceeds of a contract of insurance.

2 No deduction of the amount of the cost borne as mentioned in subsection (1)(b) (the “relevant amount”) may be made under section 555.

3 But this is subject to subsection (4) if the whole or a part of the relevant amount is treated—

a as a relevant retirement benefit of the former employee, or b as post-employment earnings of the former employee.

4 In such a case, a deduction of so much of the relevant amount as is treated in that way may be made under section 555.