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HMRC internal manual

Employment Income Manual

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HM Revenue & Customs
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Employment income: work-related training: meaning of

Section 251(1) ITEPA 2003

For the purpose of the exemption in Section 250 ITEPA 2003 (see EIM01210), “work- related training” is defined as any training course or other activity which is designed to impart, instil, improve or reinforce any knowledge, skills, or personal qualities which:

  • are, or are likely to prove, useful to the employee when performing his/her duties or
  • will qualify or better qualify the employee to undertake the employment, or to participate in charitable or voluntary activities arising through the employment.

The training must relate to the employee’s current employment or to a “related employment” (see EIM01230).

There is no restriction on the way the training can be delivered. Self-tuition packages, computer based training, distance learning, work experience or work placement and informal teach-ins are all acceptable as are more formal classroom based methods. It does not matter whether training is delivered internally or externally, or on a part-time or full-time basis.

A wide range of practical and/or theoretical skills will qualify for exemption so long as the skills are relevant to the employee. Where leadership and team skills are appropriate to the employee, participation in activities such as Outward Bound, Raleigh International, or Prince’s Trust will qualify. Work related first aid and health and safety courses will also qualify. Some employers operate Employee Development Schemes, often aimed at those employees with low skills levels. These seek to improve an employee’s attitude towards training by commencing with enjoyable courses as an introduction to more concentrated job-related training. All elements of genuine schemes will qualify.

As regards excluded expenditure, see EIM01250.