BIM47710 - Specific deductions: travel & subsistence: living expenses abroad

Statement of practice A16

The Chief Secretary to the Treasury indicated on 15 June 1977, that the rules which applied to the costs of subsistence in the case of an individual going abroad on a short visit for the purposes of UK trade would be extended to the individual who was away for a longer period, perhaps taking their spouse, or civil partner, and family with them, but who remained resident in the UK.

This led to the publication of SP/A16 which says:

”Where an individual who is resident in the UK and assessable under Case I or II of Schedule D in respect of a trade, profession or vocation (either alone or in partnership) spends time aboard on business, the cost of living abroad personal to him will not be disallowed under ICTA88/S74 (1) (a) or (b), if the absence abroad is for the purposes of the trade, profession or vocation. Private expenditure, for example, on holidays taken in the course of a business trip, should, however, not be allowed. Living expenses are regarded as including the cost of accommodation, food and drink attributable to the individual trader or partner. If he is accompanied by his family or other dependants, the costs attributable to them will not be allowed.”