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HMRC internal manual

Business Income Manual

HM Revenue & Customs
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Specific deductions: travel and subsistence: living expenses abroad — UK trades

Statement of Practice A16

This guidance applies for Income Tax only.

Where an individual who is resident in the UK and chargeable to tax on the profits of a trade, profession or vocation carried on wholly or partly in the UK (either alone or in partnership) spends time abroad on business, the cost of living abroad personal to him will not be disallowed under S34 Income Tax (Trading and Other Income) Act 2005 (the ‘wholly and exclusively’ test — see BIM37000 onwards), if the absence abroad is for the purposes of the trade, profession or vocation. Private expenditure, for example, on holidays taken in the course of a business trip, should, however, not be allowed. Living expenses are regarded as including the cost of accommodation, food and drink attributable to the individual trader or partner. If he is accompanied by his family or other dependants, the costs attributable to them will not be allowed.

See BIM47712 for the deduction for travelling and living expenses incurred for the purposes of a trade carried on wholly outside the UK.