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HMRC internal manual

Business Income Manual

Specific deductions: staffing costs: counselling expenses

S73 Income Tax (Trading and Other Income) Act 2005, S73 Corporation Tax Act 2009

A statutory deduction is available for counselling expenses incurred by a trader in relation to a person who holds or has held an office or employment under the trader for the purposes of the trade if the services provided to the employee meet the conditions for exemption from the charge to Income Tax on employment income.

‘Counselling expenses’ are expenses incurred:

  • on providing services to the employee in connection with the cessation of the office or employment;
  • on payment or reimbursement of fees for such provision;
  • on payment or reimbursement of travelling expenses in connection with such provision.