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HMRC internal manual

Employment Income Manual

Other expenses: education and training: education costs

No deduction should normally be permitted under Section 336 ITEPA 2003 for expenses incurred by an employee for external education. This is so even where the subject of the education is closely relevant to the nature of the employment. The expenses are not deductible because they are not incurred in the performance of the duties of the employment, see EIM31650.

The case law is summarised at EIM32530.

The only exception is where the external education is an integral part of the duties of the employment, see EIM32535.

In appropriate cases you should also consider the following advice:

  • where the expense of external education is paid for or reimbursed by the employer, see EIM01210 and EIM05005.
  • where payments are made to an employee who is enrolled at a university, technical college or similar educational establishment for at least one academic year and attends that establishment full-time for at least 20 weeks a year, see EIM06205 onwards.
  • where the employee attends an overseas course, conference or study tour, see EIM31950.

The circumstances in which the expense of external education can be deducted are illustrated by example EIM32545.