# Income Tax (Earnings and Pensions) Act 2003, Section 340A: Travel 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.

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Source: https://www.legislation.gov.uk/ukpga/2003/1/section/340A (the official version)
Page: https://openlegislation.uk/income-tax-earnings-and-pensions-act-2003/section-340A
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.