Income Tax (Trading and Other Income) Act 2005 section 70

Employees seconded to charities and educational establishments

Section 70 allows a business to claim a tax deduction for the costs of an employee who is temporarily seconded to a charity or an educational establishment.

• A business that temporarily seconds an employee to a charity or educational establishment can deduct the employment costs incurred during the secondment period when calculating trading profits
• The secondment must be stated and genuinely intended to be temporary
• All costs attributable to the seconded employee's employment during the secondment are deductible, regardless of whether those costs would have been allowable had the employee remained working in the trade
• Educational establishments include bodies listed in section 71 for England and Wales, Scotland, and Northern Ireland, as well as any other educational body approved by the Secretary of State (or the Department of Education in Northern Ireland)