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).|