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There are special provisions under which payments for restrictive covenants are chargeable to tax and NIC¹. To the extent that a payment is chargeable under these provisions, it is not taken into account under the legislation dealing with payments and benefits on termination of employment, as ITEPA 2003, s 401 does not apply to payments that are otherwise chargeable to tax (ITEPA 2003, s 401(3)). Certain forms of undertaking are not treated as producing a charge under ITEPA 2003, s 225. An employee may agree in a termination settlement to avoid or discontinue legal disputes or proceedings relating to the employment. The settlement may also reaffirm undertakings given as part of the original terms of the employment relating to the individual's conduct or activity after its termination. Pursuant to Statement of Practice SP 3/96, HMRC confirms that if the settlement agreement attributes no specific value, to confirmation of such preexisting contractual undertakings, then HMRC will not itself seek to attribute such