Income Tax (Earnings and Pensions) Act 2003 section 255

Exemption for contributions to individual learning account training

Section 255 provides an exemption from income tax on the provision of, and payment or reimbursement of costs relating to, individual learning account training given by a person other than the trainee's employer or former employer.

• Employees who hold a qualifying individual learning account under the Learning and Skills Act 2000 or the Education and Training (Scotland) Act 2000 are eligible for this exemption.
• The exemption covers training provided by a third party (not the employer or former employer), payments made to the training provider, and any incidental benefits of the training.
• Ancillary costs are also exempt, including incidental expenses of undertaking the training, examination and assessment fees, and the cost of obtaining any resulting qualification, registration or award.
• The exemption applies regardless of whether the training is funded by the employer, a former employer or a third party, and no charge arises under Part 2 of the Act as either general earnings or specific employment income.