Income Tax (Earnings and Pensions) Act 2003 section 310

Counselling and other outplacement services

Section 310 provides a tax exemption for outplacement services and related costs provided to employees whose employment is coming to an end, subject to five conditions being met.

• Services provided to help a departing employee adjust to job loss or find new employment (including self-employment) are exempt from income tax, along with related fees and travel expenses
• The services must consist entirely of advice and guidance, skills training, or access to office equipment and similar facilities, and the employee must have been continuously employed in the role for at least two years
• The opportunity to receive these services on similar terms must be available generally to the employer's employees or former employees, or to a particular class of them
• Where travel expenses are claimed under the exemption, they must be of a type that would qualify for mileage allowance relief or would otherwise be deductible as employment expenses