Income Tax (Earnings and Pensions) Act 2003 section 282

Exclusion from section 281 of benefits and expenses where deduction allowed

Section 282 identifies certain travel and subsistence benefits and expenses that cannot benefit from the exemption under section 281, because the employee can instead claim a tax deduction for those costs under other provisions.

• Where a tax deduction is already available for the cost of a benefit or expense under specified provisions, the section 281 exemption does not apply to that benefit or expense
• The relevant deduction provisions are section 341 (travel at the start or finish of overseas employment), section 342 (travel between employments where duties are performed abroad), and Chapter 5 of Part 5 excluding section 376 (deductions for earnings representing benefits or reimbursed expenses relating to certain foreign travel)
• If a deduction is available for only part of the cost of a benefit, the portion excluded from exemption must be determined on a just and reasonable basis
• The remaining part of the benefit that is not covered by the deduction may still qualify for exemption under section 281