Income Tax (Trading and Other Income) Act 2005 section 74

Retraining courses

Section 74 allows employers to deduct the cost of retraining courses for employees or former employees when calculating their trading profits, provided certain conditions are met.

• Employers can deduct retraining course expenses when calculating trade profits, provided the expenses relate to a current or former employee of the trade
• Retraining course expenses cover payments or reimbursements for qualifying retraining courses as defined in section 311(2) of ITEPA 2003
• The deduction is only available where the conditions set out in section 311(3) and (4) of ITEPA 2003 are satisfied, and for travel expenses, the additional conditions in section 311(5) must also be met
• The employer does not need to show that the employee is personally exempt from tax on the retraining benefit in order to claim the deduction