Income Tax (Earnings and Pensions) Act 2003 section 281

Travelling and subsistence

Section 281 sets out the types of travelling and subsistence benefits and expenses that qualify for tax exemption when an employee changes residence in connection with an employment change.

• Travel and subsistence costs for the employee and their family — including temporary visits to the new area, the actual move itself, and commuting between the old home and the new workplace or temporary accommodation — can be exempt from tax
• Where a child under 19 needs to stay in separate accommodation to maintain continuity of education during the move, their subsistence and travel between that accommodation and the employee's home can also be exempt
• The cost to the employer of providing these travel and subsistence benefits is treated as an exempt expense, but exclusions apply where a tax deduction is already available or where taxable company car or van benefits are involved
• "Subsistence" for these purposes means food, drink and temporary living accommodation, and the exemption covers different scenarios depending on whether the employment change involves a new employer, new duties, or a new place of work