SE31805 - Travel expenses: general - introduction

Section 198(1) ICTA 1988

The tests imposed by Section 198(1) ICTA 1988 for travel expenses are slightly different to the tests imposed for other expenses. The tests that apply are summarised below and the principal difference is the absence of any 'wholly and exclusively' test. The effect of this is illustrated by example SE31811.

Section 198(1) has been changed with effect from 1998/99 but only for travel expenses. The changes do not affect other expenses. The changes make the travel expenses rules fairer and they are more generous in some circumstances. The changes are introduced at SE32005 and summarised at SE32010.

For 2002/03 onwards further changes affect the amount of relief to which employees are entitled if the use their own vehicle or bicycle for business travel.  Relief is now given at a fixed statutory rate and not for the actual costs incurred.  The changes are summarised at SE31626.

These instructions have been split into two in order to deal separately with the old travel rules and with the new travel rules. It is important that you make sure you are using the correct set of instructions.

If you are dealing with travel expenses incurred in any year up to and including 1997/98 look at SE32350.

If you are dealing with travel expenses incurred in 1998/99 or any later year look at SE32000.