Part 5

Employment income: deductions allowed from earnings
Chapter 2

Deductions for employee’s expenses

Travel expenses

Travel between group employments
340
1
A deduction from earnings from an employment is allowed for travel expenses if conditions A to D are met.
2
Condition A is that the employee is obliged to incur and pay the expenses.
3
Condition B is that the travel is for the purpose of performing duties of the employment at the destination.
4
Condition C is that the employee has performed duties of another employment at the place of departure.
5
Condition D is that the employments are with companies in the same group.
6
In this section “group” means a company and its 51% subsidiaries.
7
For the purposes of sections 353 and 354 (special rules for earnings with a foreign element), the expenses are treated as incurred in the performance of the duties to be performed at the destination.
8
This section needs to be read with section 359 (disallowance of travel expenses: mileage allowances and reliefs).
Pt. 5 Ch. 2 restricted (6.4.2006) by Finance Act 2004 (c. 12), s. 284(1), Sch. 33 para. 1(5) (with Sch. 36)