Corporation Tax Act 2009 section 70

Employees seconded to charities and educational establishments

Section 70 allows a trading company to deduct the employment costs of staff temporarily seconded to charities or educational establishments when calculating its trading profits.

• A company that temporarily seconds a trade employee to a charity or educational establishment can claim a tax deduction for the employment costs incurred during the secondment period
• The secondment must be stated and genuinely intended to be temporary in nature
• All costs attributable to the seconded employee's employment during the secondment are deductible, not just those that would have been deductible had the employee remained working in the trade
• Qualifying educational establishments include schools, universities and other bodies listed for England and Wales, Scotland and Northern Ireland, as well as any other educational body specifically approved by the Secretary of State or, in Northern Ireland, the Department of Education