EIM35002 | Travelling expenses: Non-resident and qualifying new resident employees working in the United Kingdom: expenses that may be deducted

Sections 337 to 340 ITEPA 2003

In many cases a deduction is due under Section 337 ITEPA 2003 (travel in performance of duties) or Section 338 ITEPA 2003 (travel for necessary attendance) for expenses that are not deductible under the special rules in Sections 373 to 375 ITEPA 2003.

For example, a deduction under Sections 337 or Section 338 does not depend on the employee's residence. For a deduction to be given under Sections 373 to 375 an employee must be non-UK resident or a qualifying new resident under s.845B ITTOIA 2005.

A deduction under Section 337 or Section 338 may be due whether or not the expense has been reimbursed by the employer. A deduction can only be considered under Sections 373 to 375 where the employee's earnings include an amount in respect of the provision of travel facilities for a journey, or the reimbursement of expenses incurred by the employee on such a journey, see EIM35090.

Sections 373 to 375 ITEPA 2003

There are special rules in sections 373 to 375 that allow deductions for the travel costs and expenses of duties performed in the UK by non-resident or qualifying new residents where the conditions are met. For more information, see EIM35010. These special rules may permit a deduction where the main rules do not. For example, Section 338 does not permit a deduction for the cost of travelling to a workplace where the employee expects to be at that workplace for a period of continuous work lasting more than 24 months, see EIM32080. A deduction may be due in these circumstances if the conditions of Sections 373 to 375 are met.

The differences between the main rules in Sections 337 to 340 and the rules in Sections 373 to 375 are illustrated by example EIM35003.