Paragraph 7 Employees seconded to charities and educational establishments

Section 86^f1 is amended as follows.

In subsection (1) (expenditure on seconded employees deductible as if employee’s service were available for employer’s trade etc) for “notwithstanding anything in section 74 or 75, any expenditure incurred (or disbursed)” substitute “notwithstanding anything in section 74, 75 or 76, any expenditure incurred”.

In subsection (2) (definitions) for the definition of “deductible” substitute—

• ““deductible” means—

  1. (a)

     deductible as an expense in computing the profits of the employer to be charged under Case I or II of Schedule D,

  2. (b)

     deductible as expenses of management for the purposes of section 75, or

  3. (c)

     falling to be brought into account in accordance with section 76 as expenses payable which fall to be brought into account at Step 1 in subsection (7) of that section,

  as the case may be.”.