28 |
applies also to 15.6.3 and so is not duplicated here. Where the employee has to bear the expenses they are, by concession, deductible.104 |
15.6.3 Individual Learning Accounts |
Where neither section 313 nor section 250 (section 588 nor section 200B–200D) apply, section 255 (200E) may provide relief. These are the new individual learning accounts set up under the Skills and Learning Act 2000; the tax legislation refers to that Act for many of its definitions. The effect of section 255 200E is to prevent a benefits in kind charge where the employer pays the training provider directly or the employer reimburses the costs. These rules extend also to any related costs, ie incidental expenses arising wholly and exclusively from undertaking the qualifying education and training.105 The Revenue notes to the Finance Bill 2000 suggest that this test would allow additional expenses arising directly from undertaking the training, such as extra travel and additional childcare paid for or reimbursed by the employer but not preliminary or everyday expenses such as routine childcare costs. The legislation specifically allows the costs of an assessment or examination and the costs of registering a qualification.106 A special rule, limits certain travel and subsistence costs.107 The cost of an award would be exempt if it is simply a recognition of achievement. |
Learning from the experience of NVQs, section 200F and 255 withholds the exemption to the extent that the education or training is actually for entertainment, recreation or reward.108 Hence skidpan training offered as part of the staff’s annual outing (and so meeting the fair opportunity rules) would not be exempt under section 200E. Likewise, golfing lessons offered to those sales |