EIM70400 - Tax treatment of steel industry employees: redundancies

Steel Industry employees may be entitled to payments under schemes set up by the European Community (Iron and Steel Employees Re-adaptation Benefits Scheme).

The tax treatment of these payments is as follows:

Type of payment	Tax treatment
Payments to the employed, self-employed or unemployed	Taxable as employment income
Payments during retraining	Taxable only under section 403 ITEPA 2003
Grants to employees who are transferred	Taxable as employment income but exemption for the first £8,000 of expenses may be available under section 271 ITEPA 2003 (see EIM03103 and subsequent guidance)