Section 340 — Income Tax (Earnings and Pensions) Act 2003: Travel between group employments

Travel between group employments 340 1 A deduction from earnings from an employment is allowed for travel expenses if conditions A to D are met.

2 Condition A is that the employee is obliged to incur and pay the expenses.

3 Condition B is that the travel 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 the employments are with companies in the same group.

6 In this section “ group ” means a company and its 51% subsidiaries.

7 For the purposes of sections 353 and 354 (special rules for earnings with a foreign element), the expenses are treated as incurred in the performance of the duties to be performed at the destination.

8 This section needs to be read with section 359 (disallowance of travel expenses: mileage allowances and reliefs).