Section 340A | Travel between linked employments ^F1

(1)A deduction from earnings from an employment is allowed for travel expenses if conditions A to E are met.^F1

(2)Condition A is that the employee is obliged to incur and pay the expenses.^F1

(3)Condition B is that the travel—^F1

(a)takes place within the United Kingdom, and^F1

(b)is for the purpose of performing duties of the employment at the destination.^F1

(4)Condition C is that the employee has performed duties of another employment at the place of departure.^F1

(5)Condition D is that—^F1

(a)at least one of the employments is as a director of a company (“company X”), and^F1

(b)the other employment is also with a company (“company Y”) but not necessarily as a director of it.^F1

(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.^F1

(7)This section needs to be read with section 359 (disallowance of travel expenses: mileage allowances and reliefs).^F1

(8)In this section—^F1

“director” has the same meaning as in the benefits code (see section 67), and

“group” means a company and its 51% subsidiaries.