PART XIII MISCELLANEOUS SPECIAL PROVISIONS

C1CHAPTER VI OTHER PROVISIONS

Annotations:
Modifications etc. (not altering text)
C1

Pt 13 Ch. 6: ss. 573, 575 and 576 transposed to Pt. 13 Ch. 5A (6.4.2007 with effect in accordance with s. 1034(1) of the affecting Act) by Income Tax Act 2007 (c. 3), Sch. 1 paras. 117(3), 119(7), 120(7) (with Sch. 2)

Miscellaneous

C2588 Training courses for employees.

F3M11

This section applies where a F10company (“the employer”) incurs retraining course expenses within the meaning of section 311 of ITEPA 2003 (exemptions: retraining courses).

3

Subject to subsection (4) below, where—

F4a

an employer incurs expenditure in paying or reimbursing retraining course expenses as mentioned in subsection (1) above; and

b

by virtue of section 311 of ITEPA 2003, no liability to income tax arises in respect of the payment or reimbursement,

then, if and so far as that expenditure would not, apart from this subsection, be so deductible, it shall be deductible in computing for the purposes of Schedule D the F1profits of the F11trade or profession of the employer for the purposes of which the employee is or was employed.

F84

Where the employer is a company with investment business or a company carrying on life assurance business, subsection (3) above shall have effect with the substitution for the words following paragraph (b) of—

“then, if and so far as that expenditure would not, apart from this subsection, fall to be so deductible or brought into account, it shall—

  1. i

    in a case where the employer is a company with investment business, be deductible as expenses of management under section 75, or

  2. ii

    in a case where the employer is a company carrying on life assurances business, be brought into account under section 76 as expenses payable.”

.

5

In any case where—

a

F5. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

b

an employer’s liability to F12corporation tax for any F13accounting period is determined (by assessment or otherwise) on the assumption that, by virtue only of subsection (3) above (or subsections (3) and (4) above), F14it is entitled to a deduction on account of any expenditure and, subsequently, there is F6a failure to meet a condition of the kind mentioned in section 312(1)(b)(i) or (ii) of ITEPA 2003;

an assessment under F15. . . F2paragraph 41 of Schedule 18 to the Finance Act 1998, of an amount due in consequence of the failure referred to above may be made at any time not later than six years after the end of the F16accounting period in which the failure occurred.

F95A

The reference in subsection (5)(b) above to a deduction on account of any expenditure includes a reference to bringing an amount into account in determining the amount of the deduction to be made under section 76.

6

Where an event occurs by reason of which there is a failure to F7meet a condition in section 312(1)(b)(i) or (ii) of ITEPA 2003, the employer of the employee concerned shall within 60 days of coming to know of the event give a notice to the inspector containing particulars of the event.

7

If the inspector has reason to believe that an employer has not given a notice which F17it is required to give under subsection (6) above in respect of any event, the inspector may by notice require the employer to furnish him within such time (not less that 60 days) as may be specified in the notice with such information relating to the event as the inspector may reasonably require for the purposes of this section.