Income Tax (Earnings and Pensions) Act 2003 section 328

The income from which deductions may be made

Section 328 establishes the rules governing which earnings employment-related expense deductions can be set against, including exceptions for ministers of religion and public revenue earnings.

• The general rule is that allowable deductions can only be offset against earnings from the specific employment that gives rise to the expense — not against earnings from any other employment
• An exception applies to ministers of religion, whose qualifying expenses may be deducted from earnings from any ministerial employment
• Fixed sum deductions from earnings payable out of public revenue can only be set against earnings that are themselves paid from public funds
• Certain categories of deduction (known as "deductions limited to specified earnings") can only be offset against earnings taxable under specific charging provisions, not against all earnings from the same employment