Income Tax (Earnings and Pensions) Act 2003 section 241A

Travel by unpaid directors of not-for-profit companies

Section 241A provides an income tax exemption for travel expense payments made to unpaid directors of not-for-profit companies, provided certain conditions are satisfied.

• Travel expenses paid to or reimbursed for an unpaid director of a not-for-profit company are exempt from income tax, provided the payment is made wholly and exclusively for that purpose.
• The director must be obliged to incur the travel expenses as part of their role, and the expenses must relate to necessary attendance at a location for the performance of their duties.
• The director must not receive any employment income from the role other than payments that qualify as expenses payments under Chapter 3 of Part 3 of the Act.
• A not-for-profit company is one that does not carry on activities for the purpose of making profits for distribution to its members or others, and "director" carries the same meaning as in the benefits code.