Part 5Employment income: deductions allowed from earnings
C1Chapter 2Deductions for employee’s expenses
Travel expenses
340AF1Travel between linked employments
1
A deduction from earnings from an employment is allowed for travel expenses if conditions A to E are met.
2
Condition A is that the employee is obliged to incur and pay the expenses.
3
Condition B is that the travel—
a
takes place within the United Kingdom, and
b
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—
a
at least one of the employments is as a director of a company (“company X”), and
b
the other employment is also with a company (“company Y”) but not necessarily as a director of it.
6
Condition E is that the employee was appointed as a director of company X because company Y, or a company in the same group as company Y, has a shareholding or other financial interest in company X.
7
This section needs to be read with section 359 (disallowance of travel expenses: mileage allowances and reliefs).
8
In this section—
“director” has the same meaning as in the benefits code (see section 67), and
“group” means a company and its 51% subsidiaries.
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)