Part 4Employment income: exemptions

Chapter 11Miscellaneous exemptions

Expenses incidental to sale etc. of asset

326Expenses incidental to transfer of a kind not normally met by transferor

1

No liability to income tax arises by virtue of the payment or reimbursement of expenses which—

a

are incidental to, and incurred wholly and exclusively as a result of, an employment-related asset transfer, and

b

are of a kind not normally met by the transferor.

2

There is an “employment-related asset transfer” if—

a

an asset or the beneficial interest in an asset is transferred to an employee’s employer or a person nominated by the employer, and

b

the right or opportunity to make the transfer arose by reason of the employment.

3

In this section references to a transfer are to a sale or any other kind of disposal.