SE31940 - Travel expenses: general - directors' travelling expenses - Extra-Statutory Concession A4 - directors who are acting on behalf of a professional practice - example

A solicitor is a partner in a local firm. She is executor to the estate of a person who was the only shareholder in a property holding company. As part of her duties as executor she becomes a director of the company and arranges for it to be sold. She visits a number of people who are interested in buying the company and the company reimburses her for the cost of these journeys.

Extra-Statutory Concession A4 applies. The director is not assessed under Schedule E on the travelling expenses paid to her by the company as long as the expenses she incurs are not deducted under Schedule D in computing the profits of her partnership.