410Exception for payments and benefits in respect of [F1certain legal expenses etc] and indemnity insurance: individual deceasedU.K.
(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 [F2or 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.
Textual Amendments
F1Words in s. 410 heading substituted (with effect in accordance with s. 4(8) of the amending Act) by Finance (No. 2) Act 2017 (c. 32), s. 4(5)(a)
F2Words in s. 410(3) inserted (with effect in accordance with s. 4(8) of the amending Act) by Finance (No. 2) Act 2017 (c. 32), s. 4(5)(b)