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Employment Income: Scope |
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Continental Shelf; general earnings from employment in the UK sector of the continental shelf are treated as being in I respect of duties performed in the UK.114 |
13A.3.2 Deductions for Travel Costs |
This section—13A.3.2—covers the rules allowing the taxpayer to deduct certain travel costs. The term travel is to be construed narrowly and does not extend to the costs of accommodation or subsistence which attract their own—and more—restrictive rules set out in the next section 13A.3.2A. |
(a) Initial and final travel expenses section 341 (section 193) |
Initial and final travel expenses are not incurred ‘in the performance of the duties’ but to enable a person to carry them out (or return from having carried them out) and so cannot come within the normal deduction rule in ITEPA section 337. Particular legislation (section 341) therefore applies where (a) the employee is resident and ordinarily resident in the UK, (b) the duties of the employment are performed wholly outside the UK and (c) if the employer, is a foreign employer the employee is domiciled in the UK;115 these are of course the circumstances in which the employee is taxable in full on general earnings and cannot use the remittance basis. The employee may deduct the costs of travel from any place in the UK to take up the employment, and of travel to any place in the UK on its termination.116 The reference to ‘any place in’117 the UK is presumably to ensure that where, for example, an employee flies from Glasgow to the United States via Heathrow, the costs of the flight from Glasgow to London are deductible and not just the costs of travel from the airport of departure from the UK. Section 341 allows apportionment if the travel is only partly attributable to this purpose.118 |
(b) Travel between employments section 342 |
Travel costs are deductible under ITEPA section 342 where the employee has more than one employment the duties of at least one of which are performed wholly or partly outside the UK.119 The other conditions are (a) that the travel is to carry out the duties of the employment at the destination, (b) that the employee has performed duties of |