Part 4Employment income: exemptions
Chapter 3Exemptions: other transport, travel and subsistence
240Incidental overnight expenses and benefits
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 expenses which—
a
are incidental to the employee’s absence from the place where the employee normally lives,
b
relate to a continuous period of such absence in relation to which the overnight stay conditions are met (a “qualifying period”), and
c
would not be deductible under Part 5 if the employee incurred and paid them and Chapter 2 of this Part (mileage allowances and passenger payments) did not apply.
2
No liability to income tax arises by virtue of Chapter 10 of Part 3 (taxable benefits: residual liability to charge) in respect of a benefit provided for an employee if—
a
its provision is incidental to such an absence during a qualifying period, and
b
no amount would be deductible in respect of it under Part 5.
3
Subsections (1) and (2) are subject to section 241 (incidental overnight expenses and benefits: overall exemption limit).
4
The overnight stay conditions are that—
a
the employee is obliged to stay away from the place where the employee normally lives throughout the period,
b
the period includes at least one overnight stay away from that place, and
c
each such overnight stay during the period is at a place the expenses of travelling to which meet condition A or B.
5
Condition A is that the expenses are deductible under Part 5 (otherwise than under any of the excepted foreign travel provisions) or would be if the employee incurred and paid them and Chapter 2 of this Part did not apply.
6
Condition B is that the expenses are within section 250 or 255 (exemption of work-related and individual learning account training provision) or would be if the employer paid or reimbursed them.
7
In this section “excepted foreign travel provisions” means—
a
section 371 (travel costs and expenses where duties performed abroad: visiting spouse’s or child’s travel),
b
section 374 (non-domiciled employee’s spouse’s or child’s travel costs and expenses where duties performed in UK), and
c
section 376 (foreign accommodation and subsistence costs and expenses (overseas employments)).