Corporation Tax Act 2009 sections 137–139

Training courses for employees

Sections 137–139 provide transitional rules to preserve the tax treatment of employee training and retraining course expenditure when the old ICTA rules were replaced by the Corporation Tax Act 2009.

• The old ICTA rules on training courses for employees continue to apply for pre-2003-04 tax year situations that were already in progress, despite the formal repeal of those rules by CTA 2009.
• Penalty and special return provisions linked to the old training course rules also continue to have effect for those preserved cases.
• Where a company paid or reimbursed retraining course expenses between 6 April 2003 and 31 March 2009, claimed a corporation tax deduction under the old rules, and no recovery assessment had been raised before 1 April 2009, the new CTA 2009 recovery of tax mechanism applies instead.
• These transitional provisions ensure no gap in HMRC's ability to recover tax where an employee fails to meet the required retraining conditions, even though the underlying legislation has changed.