EIM32035 | Travel expenses: travel for necessary attendance: introduction: travel between separate employers within a group

Section 340 ITEPA 2003

Section 340 ITEPA 2003 introduces a rule that allows any person who is a director or employee of two or more companies within the same group of companies to deduct the cost of travelling between workplaces for the performance of the duties of those separate offices or employments. Expenses which can be deducted under section 340 include necessary accommodation and subsistence expenses incurred in the course of the journey, but do not include the cost of accommodation at the destination.

Companies are members of the same group if one is at least a 51% subsidiary of the other, or both are at least 51% subsidiaries of a third company.

See EIM32036 for examples in relation to the application of section 340.