Income Tax (Earnings and Pensions) Act 2003 section 250

Exemption of work-related training provision

Section 250 provides an income tax exemption for the provision of work-related training to employees, including associated costs and incidental benefits.

• No income tax arises on the provision of work-related training or incidental benefits, whether provided by the employer or a third party
• The exemption covers direct provision of training as well as payment or reimbursement of training costs to or on behalf of the employee
• Ancillary costs are also exempt, including incidental expenses of undertaking the training, examination or assessment fees, and costs of obtaining resulting qualifications, registrations or awards
• The exemption applies broadly across all employment income charges, so no charge arises under Part 2 of the Act whether as general earnings or specific employment income