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

Travel between linked employments 340A 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.