HMRC internal manual

Employment Income Manual

EIM01200 - Employment income: further education and training costs: introduction

Sections 250 and 255 ITEPA 2003

Section 250 ITEPA 2003 provides a wider statutory exemption in connection with an employer’s payment or reimbursement of expenditure on the provision of work-related training for employees. Prior to 6 April 1997, there were more restrictive rules.

The Individual Learning Account (ILA) scheme was introduced by the Learning and Skills Act 2000.

In England and Northern Ireland, the scheme was suspended on 7 December 2001.

In Wales, the scheme was closed in 2011.

In Scotland, Individual Learning Account (Scotland) Amendment Regulations 2017, SI 2017 No 288 Regulations renamed Individual Learning Accounts (ILAs) as Individual Training Accounts (ITAs) and came into force on 15 October 2017.

From 15 October 2017, there are therefore no ILA provisions in the United Kingdom, but Scotland retains the scheme under the new name of Individual Training Accounts.

For specific guidance on Individual Learning Accounts and Individual Training Accounts, please see EIM01310.

The guidance is arranged as follows.

Page Guidance
EIM01210 Work-related training: general
EIM01220 Meaning of “work-related training”
EIM01230 Meaning of “related employment”
EIM01235 Reimbursement of pre-employment training expenses: Silva v Charnock (SpC332)
EIM01240 Costs related to training
EIM01250 Excluded expenditure/apportionment of costs
EIM01260 Travel and subsistence
EIM01270 Effect on incidental overnight expenses
EIM01280 Provision of assets
EIM01300 Work-related training provided by third parties
EIM01310 Individual Learning Accounts/Individual Training Accounts: background
EIM01315 Individual Training Accounts: exemption
EIM01320 Individual Training Accounts: where exemption does not apply

As regards:

  • courses of training for employees who are about to leave or have recently left an employment, see EIM05005 onwards
  • claims under Part 5 Chapter 2 for a deduction for expenses not reimbursed by the employer, see EIM32525 to EIM32535
  • courses for which the employee is enrolled at a university, technical college or similar educational establishment for at least one academic year and his actual full time attendance at that establishment during that period amounts on average to at least 20 weeks a year, see EIM06205 onwards
  • examination grants to employees, see EIM01100
  • overseas conferences and study tours, see EIM31950 onwards