Section 340A Travel between linked employmentsF1

(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.

Annotations

Textual amendments

F1: S. 340A inserted (with effect in accordance with art. 4 of the amending S.I.) by The Enactment of Extra-Statutory Concessions Order 2014 (S.I. 2014/211), arts. 1, 2(2)

Notes on Chapter 2

Modifications

C1: 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)