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HMRC internal manual

Employment Income Manual

Travel expenses: general: directors' travelling expenses: travel where directorship held as part of trade or profession

Section 241B ITEPA 2003

Section 241B legislates the rules that were previously set out in Extra Statutory Concession A4(c). It provides that no liability to income tax arises in respect of certain payments or reimbursements of travel expenses incurred by an employee in his or her capacity as a director of a professional practice.

In order for section 241B to apply the payments must be amounts that, had they been paid by the director, would be deductible when calculating the profits of the practice under ITTOIA 2005.

Section 241B has effect in relation to expenses incurred on or after 6 April 2014. Expenses incurred prior to that date are dealt with under ESC A4(c), see EIM31935.