when TA 1988, section 380 allows the loss arising
from an employment to be set off. The Notes to the Bill suggest that a
loss can arise in three situations: (a) for ministers of religion, (b)
where capital allowances exceed the earnings income and (c) where the
loss arises because the employee’s contract makes him liable for losses
as well as entitled to profits. |
Section 330 forbids double deductions and section
331 provides an order in which deductions are to be made by referring
to the relevant provisions elsewhere. For the rules where a foreign element
is involved, see above at §13A.3.2. |
18A.2 Chapter 2: Qualifying
Travelling Expenses Paid by Employee8
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- Section 337(1)(b) refers amounts necessarily incurred
on travelling in the performance of the duties of the employment. The
problem of two employments within one group is addressed by section 340
which provides expressly that expenses of travel by an employee between
two places at which the employee performs duties of different offices
or employments under or with companies in the same group, are treated
as necessarily expended in the performance of the duties which the employee
is to perform at the destination and so are deductible.9 A 51% subsidiary
test is used to determine when companies are members of the same group.10
- Section 338 allows the expenses of travelling which
(i) are attributable to the necessary attendance at any place of the holder
of the office or employment in the performance of the duties of the office
or employment, but (ii) which are not expenses of ordinary commuting or
private travel.11 Of these, (i) is designed to clarify the law concerning
the costs of travel to or from home or a temporary workplace, while (ii)
is designed to prevent (i)
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