Corporation Tax Act 2009 section 73

Counselling and other outplacement services

Section 73 allows a trading company to deduct the cost of outplacement counselling and related services provided to employees or former employees who are leaving or have left their role.

• A company carrying on a trade may deduct counselling expenses incurred in connection with an employee's or office holder's cessation of employment, provided certain conditions are met.
• Counselling expenses include the cost of providing outplacement services, paying or reimbursing fees for those services, and paying or reimbursing related travelling expenses.
• The deduction is only available if conditions A to D set out in section 310 of the Income Tax (Earnings and Pensions) Act 2003 are satisfied, with an additional condition E applying specifically to travel expenses.
• These are the same conditions that exempt the employee from income tax on the counselling received, ensuring symmetry between the employer's deduction and the employee's exemption.