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15A.6 Costs and Benefits of Training |
15A.6.1 Training, Scholarship and Apprenticeship Schemes |
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ITEPA section 311 is concerned with helping an employee get new skills with a view to changing employment, hence its appearance in part 4 chapter 10 (ex TA 1988, section 588) The section provides an exemption in respect of expenditure incurred by an employer in connection with training schemes; the exemption allows the employer to deduct the expenditure while exempting the employee from any liability to tax under schedule E.96 |
The exemption is given for expenditure reimbursed or incurred by the employer in connection with a qualifying course of training. The course must be attended on a full-time (or substantially full-time) basis; the employee must have been employed for two years and the opportunity to take the course must be available either generally to employees and former employees or to a particular class of such persons.97 The course must be designed to impart or improve skills or knowledge relevant to and intended to be used in the course of gainful employment (including self-employment) of any description and the course must be entirely devoted to the teaching and/or practical application of such skills or knowledge.98 In addition, the course must not last more than one year; the old condition that all the teaching and practical application must take place in the UK has been removed, presumably because of EU freedom of establishment considerations. |
The course must be undertaken by an employee (or former employee) with a view to retraining. The course cannot be regarded as undertaken with a view to retraining unless it is begun while |