Part 2Trading income

Chapter 5Trade profits: rules allowing deductions

Seconded employees

70Employees seconded to charities and educational establishments

1

This section applies if a person carrying on a trade (“the employer”) makes the services of a person employed for the purposes of the trade available to—

a

a charity, or

b

an educational establishment,

on a basis that is stated and intended to be temporary.

2

In calculating the profits of the trade, a deduction is allowed for expenses of the employer that are attributable to the employee's employment during the period of the secondment.

3

In this section—

  • “educational establishment” means—

    1. a

      in England and Wales, any of the bodies mentioned in section 71(1),

    2. b

      in Scotland, any of the bodies mentioned in section 71(2),

    3. c

      in Northern Ireland, any of the bodies mentioned in section 71(3), and

    4. d

      any other educational body which is for the time being approved for the purposes of this section by the Secretary of State or, in Northern Ireland, the Department of Education, and

  • “the period of the secondment” means the period for which the employee's services are made available to the charity or educational establishment.

71Educational establishments

1

A body in England and Wales is an educational establishment for the purposes of section 70 if it is—

a

a local education authority,

b

an educational institution maintained or otherwise supported by a local education authority,

c

an independent school within the meaning of the Education Act 1996 (c. 56) registered under section 161 of the Education Act 2002 (c. 32), or

d

an institution within the further education sector, or the higher education sector, within the meaning of the Further and Higher Education Act 1992 (c. 13).

2

A body in Scotland is an educational establishment for the purposes of section 70 if it is—

a

an education authority within the meaning of the Education (Scotland) Act 1980 (c. 44),

b

an educational establishment within the meaning of the Education (Scotland) Act 1980 managed by an education authority within the meaning of that Act,

c

a public or grant-aided school within the meaning of the Education (Scotland) Act 1980,

d

an independent school within the meaning of the Education (Scotland) Act 1980,

e

a central institution within the meaning of the Education (Scotland) Act 1980,

f

an institution within the higher education sector within the meaning of section 56(2) of the Further and Higher Education (Scotland) Act 1992 (c. 37), or

g

a college of further education within the meaning of section 36(1) of the Further and Higher Education (Scotland) Act 1992.

3

A body in Northern Ireland is an educational establishment for the purposes of section 70 if it is—

a

an education or library board within the meaning of the Education and Libraries (Northern Ireland) Order 1986 (S.I. 1986/594 (N.I. 3)),

b

a college of education or a controlled, maintained, grant-maintained integrated, controlled integrated, voluntary or independent school within the meaning of the Education and Libraries (Northern Ireland) Order 1986, or

c

an institution of further education within the meaning of the Further Education (Northern Ireland) Order 1997 (S.I. 1997/1772 (N.I. 15)).