Income Tax (Earnings and Pensions) Act 2003 section 295A

Travel expenses of members of local authorities etc.

Section 295A provides an income tax exemption for qualifying travel expense payments made to members of local authorities and similar bodies, subject to certain conditions.

• Qualifying travel expense payments to members of relevant authorities are exempt from income tax, provided they do not relate to the member's own vehicle use already covered by separate rules
• The exemption does not apply to home-to-workplace travel expenses where the member lives more than 20 miles outside the boundary of the relevant authority's area
• The Treasury has regulation-making powers to specify which bodies count as relevant authorities, which members qualify, and what constitutes a qualifying payment
• Travel expenses for these purposes include the costs of travel itself, any subsistence expenditure, and other associated costs incurred in making the journey