Travel expenses: travel for necessary attendance: introduction: travel between separate employers within a group
Section 340 ITEPA 2003
Section 340 ITEPA 2003 introduces a rule that allows any person who is a director or employee of two or more companies within the same group of companies to deduct the cost of travelling between workplaces for the performance of the duties of those separate offices or employments. Expenses which can be deducted under Section 340 include necessary accommodation and subsistence expenses incurred in the course of the journey, but do not include the cost of accommodation at the destination.
This rule extended and provided statutory cover for the similar rule in Extra-Statutory Concession A4(a). The concession only applies to directors while the legislation extends to all employees. The concession only applies to travel in the United Kingdom, while the legislation applies to travel anywhere. However, the concession applies to associated companies as they are defined in that concession, while the legislation is limited to companies within the same group, see example EIM32036.
For this purpose companies are members of the same group if one is at least a 51% subsidiary of the other, or both are at least 51% subsidiaries of a third company.