Income Tax (Earnings and Pensions) Act 2003 section 311

Retraining courses

Section 311 provides an income tax exemption for employer payments or reimbursements of retraining course expenses when an employee's employment has ceased or is expected to cease, provided certain conditions about the course, the employment and any travel expenses are satisfied.

• Employers can pay or reimburse retraining course fees, travel costs, examination fees and essential books without triggering an income tax liability for the employee, provided all the relevant conditions are met.
• The training course must impart or improve skills for gainful employment (including self-employment), be entirely devoted to teaching or practical application of those skills, and last no more than two years.
• The employee must have been in the ending employment for at least two years, must start the course during employment or within one year of leaving, must leave before two years after the course ends and not be re-employed by the same employer within two years, and the course opportunity must be available generally to fellow employees or a particular class of them.
• Any travel expenses claimed under this exemption must be of a type that would qualify for mileage allowance relief or would be deductible under the general employment expenses rules, assuming course attendance were a duty of the employment.