Section 326 ITEPA 2003 exempts from tax certain paid or
reimbursed expenses that arise in connection with an asset
transferred by reason of the employment.
This exemption most commonly applies where a director or
employee who benefits from a relocation package, transfers his
house to the employer who pays the acquisition cost.
The expenses must be incurred as a result of that transfer
and must not be of a type normally met by the transferor. Thus the
disposal costs of a house sold to an employer under a relocation
package are not within the exemption, as a vendor would normally
meet these costs.
