Part 4Employment income: exemptions

Chapter 3Exemptions: other transport, travel and subsistence

241AF1Travel by unpaid directors of not-for-profit companies

1

No liability to income tax arises in respect of a sum if or to the extent that it is paid wholly and exclusively for the purpose of paying or reimbursing travel expenses in respect of which conditions A to C are met.

2

Condition A is that—

a

the employee is obliged to incur the expenses as holder of the employment, and

b

the expenses are attributable to the employee’s necessary attendance at any place in the performance of the duties of the employment.

3

Condition B is that the employment is employment as a director of a not-for-profit company.

4

Condition C is that the employment is one from which the employee receives no employment income other than sums to which Chapter 3 of Part 3 applies (expenses payments).

5

In this section—

a

“director” has the same meaning as in the benefits code (see section 67), and

b

“not-for-profit company” means a company that does not carry on activities for the purpose of making profits for distribution to its members or others.