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

Travel where directorship held as part of trade or profession

Section 241B provides an income tax exemption for travel expense payments or reimbursements made to directors who hold their directorship as part of a wider trade, profession or vocation.

• The exemption applies only to sums paid wholly and exclusively to cover or reimburse travel expenses that the director is obliged to incur in that capacity.
• The director must also carry on a trade, profession or vocation, either alone or in partnership, separate from the directorship.
• The travel expenses must be of a kind that would qualify for a deduction in calculating the profits of that trade, profession or vocation under the Income Tax (Trading and Other Income) Act 2005, but no such deduction is actually taken.
• The definition of "director" follows the same meaning used in the benefits code, as set out in section 67 of the Act.