Section 241A | Travel by unpaid directors of not-for-profit companies ^F1

(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.