Corporation Tax Act 2009 section 74

Retraining courses

Section 74 allows a corporation tax deduction for expenses incurred by a company in retraining its employees or former employees, provided certain conditions are met.

• A company can deduct the cost of retraining courses when calculating its trading profits, where the training relates to a current or former employee of that trade.
• Retraining course expenses include amounts paid or reimbursed by the employer for course fees, and these must fall within the definition set out in ITEPA 2003.
• The deduction is only available if the conditions in section 311(3) and (4) of ITEPA 2003 are satisfied, with additional conditions under section 311(5) applying where travel expenses are involved.
• These conditions mirror the rules that exempt the employee from income tax on the retraining benefit, ensuring consistent treatment for both employer and employee.