Income Tax (Earnings and Pensions) Act 2003 section 245

Travelling and subsistence during public transport strikes

Section 245 provides an income tax exemption for certain benefits and payments made to employees when their normal public transport service is disrupted by a strike or other industrial action.

• Overnight accommodation near the employee's permanent workplace, or reimbursement of expenses for such accommodation, is tax-free during a public transport disruption.
• Alternative transport provided for ordinary commuting, or reimbursement of the employee's transport expenses, is also exempt from income tax.
• The exemption applies only where the employee's normal public transport service is affected by a strike or other industrial action — it does not apply in other circumstances.
• If the employee is working at a temporary workplace or attending a training course, this exemption does not apply, but a tax deduction may instead be available under Part 5 of the Act.