Income Tax (Earnings and Pensions) Act 2003 section 258

Exception where provision for excluded purposes

Section 258 restricts the individual learning account training exemption under section 255 by identifying two purposes for which any facilities, benefits or cost reimbursements will not qualify for the exemption.

• The exemption for individual learning account training does not apply where facilities or benefits are provided for entertainment, recreational or leisure purposes.
• The exemption also does not apply where provision is made as a reward for the employee or former employee performing their duties or performing them in a particular way.
• Entertainment and recreational purposes are broadly defined and include any leisure activity undertaken by the employee or former employee.
• Where provision is made partly for excluded purposes and partly for qualifying purposes, the exemption is disapplied only to the extent that the excluded purposes apply.