38 Restriction of deductions
Income Tax (Trading and Other Income) Act 2005 (2005 c 5) | Legislation

Employee benefit contributions

38  Restriction of deductions

[(1)     This section applies if, in calculating for income tax purposes the profits of a trade of a person (“the employer”) for a period, a deduction would otherwise be allowable for the period in respect of employee benefit contributions made or to be made (but see subsection (4)).]

[(1A)     No deduction is allowed under this section in respect of employee benefit contributions for a period of account which starts more than 5 years after the end of the period of account in which the contributions are made.]

(2)     No deduction is allowed for the contributions for the period except so far as—

(a)     qualifying benefits are provided, or qualifying expenses are paid, out of the contributions during the period or within 9 months from the end of it, or

(b)     if the making of the contributions is itself the provision of qualifying benefits, the contributions are made during the period or within 9 months from the end of it.

[(2AA)     Subsection (2) is subject to subsections (1A) and (2AB).

(2AB)     Where subsection (3C) applies, no deduction is

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