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HMRC internal manual

Employment Income Manual

Employment income: retraining expenses paid by employer: expenses to which exemption applies

Section 311(2) ITEPA 2003

If all the conditions in EIM05010 are satisfied, no tax liability arises when the employer or former employer pays the following expenses:

  • fees for the course
  • fees for examinations taken during or at the end of the course
  • the cost of essential books
  • the full cost of travelling to attend the course, plus related subsistence expenses.

Mileage allowance payments should be dealt with under the approved mileage allowance payments scheme (see EIM31200 onwards).

Note that Section 311 acts solely as an exemption from charge. It does not enable employees to obtain a deduction for retraining expenses that they incur, and which are not reimbursed by their employer.