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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: costs related to training

Section 250(2) ITEPA 2003

Section 250 ITEPA 2003 exempts expenditure on the provision of work-related training(see EIM01220) and on the payment of related costs which fallwithin Section 250(2). They are:

  • costs which are incidental to the employee’s undertaking the training. For example, and having regard to the circumstances of the employee, incidental costs would include the additional travel or child care costs made necessary by the training course, but not the routine everyday costs of travel or child care.
  • costs incurred in connection with an assessment of what the employee has gained from the training. This need not be by way of formal examination.
  • the cost of obtaining for the employee any qualification, registration or award where entitlement is as a result of the training or assessment in question. The term “award” is not limited to a certificate or citation. A memento of the course (such as a scarf, tie, or mascot) would satisfy the term, as would some similar award of an asset which had a low likely re-sale value. Other awards made in recognition of, rather than as reward for, training achievement would also be acceptable.

As regards excluded expenditure, see EIM01250.