Income Tax (Earnings and Pensions) Act 2003 section 252

Exception for non-deductible travel expenses

Section 252 limits the work-related training exemption by excluding travel and subsistence costs unless they would otherwise qualify for tax relief in their own right.

• The general exemption for work-related training does not automatically cover travel or subsistence costs provided, paid, or reimbursed by the employer
• Travel costs are only exempt if they would qualify for mileage allowance relief (condition A) or would be tax-deductible under the general employment expense rules (condition B)
• Subsistence costs — covering food, drink, and temporary living accommodation — are only exempt if they would be tax-deductible under the general employment expense rules (condition B)
• Both conditions are tested on the assumption that the employee undertook the training as a duty of their employment and that the employee personally incurred and paid the expenses