Certain employees, and former employees, are exempt from any
charge to tax in respect of costs met by their employer, or former
employer, for training courses enabling them to acquire skills or
knowledge which might help them to obtain further employment, or to
become self-employed. Exemption is provided by Section 311 ITEPA
2003, and the guidance beginning at
EIM05010 below explains how the
exemption works. Certain conditions requiring the employee to have
worked full time and embark on a full time course were relaxed with
effect from 6 April 2005. The condition restricting the length of
the course to one year was extended to two years from the same
date.
Note that Section 311 acts solely as an exemption from
charge. It does not enable employees to obtain a deduction for
retraining expenses that they incur, and which are not reimbursed
by their employer.
As regards expenses relating to further education courses or
training related to the employee's current employment, see
EIM01200 onwards.
