Foreign travel rules: deductions limited to amount included in earnings
Sections 370 to 371 and 376 ITEPA 2003Some of the foreign travel deductions only apply where the employee’s taxable earnings include an amount in respect of:
- the provision of travel facilities for a journey made by the employee, or
- the reimbursement of expenses incurred by the employee on such a journey.This approach provides a built-in test. In the usual case, it will limit the deductions to the amounts that an employer is prepared to pay.
The deductions are available against general earnings taxable under Section 15 (or Section 21 before 6 April 2008) ITEPA 2003 (see EIM40101). It follows that if what the employer pays is not taxable under Section 15 ITEPA 2003, then no deduction can be given.