Section 241A — Income Tax (Earnings and Pensions) Act 2003: Travel by unpaid directors of not-for-profit companies

Travel by unpaid directors of not-for-profit companies 241A 1 No liability to income tax arises in respect of a sum if or to the extent that it is paid wholly and exclusively for the purpose of paying or reimbursing travel expenses in respect of which conditions A to C are met.

2 Condition A is that—

a the employee is obliged to incur the expenses as holder of the employment, and b the expenses are attributable to the employee’s necessary attendance at any place in the performance of the duties of the employment.

3 Condition B is that the employment is employment as a director of a not-for-profit company.

4 Condition C is that the employment is one from which the employee receives no employment income other than sums to which Chapter 3 of Part 3 applies (expenses payments).

5 In this section—

a “director” has the same meaning as in the benefits code (see section 67),

and b “not-for-profit company” means a company that does not carry on activities for the purpose of making profits for distribution to its members or others.