Part 2

Trading income
Chapter 5

Trade profits: rules allowing deductions

Counselling and retraining expenses

Counselling and other outplacement services
73
1
In calculating the profits of a trade, a deduction is allowed for counselling expenses if—
a
the person carrying on the trade (“the employer”) incurs the expenses,
b
the expenses are incurred in relation to a person (“the employee”) who holds or has held an office or employment under the employer for the purposes of the trade, and
c
the relevant conditions are met.
2
In this section “counselling expenses” means expenses incurred—
a
in the provision of services to the employee in connection with the cessation of the office or employment,
b
in the payment or reimbursement of fees for such provision, or
c
in the payment or reimbursement of travelling expenses in connection with such provision.
3
In this section “the relevant conditions” means—
a
conditions A to D for the purposes of section 310 of ITEPA 2003 (employment income exemptions: counselling and other outplacement services), and
b
in the case of travel expenses, condition E for those purposes.