SE31970 - Travel expenses: general - overseas conferences, seminars and study tours - overseas trips as incentives

Overseas trips that are variously described as conferences, conventions or seminars are often no more than incentives intended to reward past performance or to motivate employees for the future. Commonly the business element is minimal, for example an address by a company executive. The itinerary will consist largely of social occasions, excursions and leisure activities. No deduction should be permitted for the cost of such trips, see example SE31991.

A deduction is only due in the circumstances described in SE31950. It can generally be demonstrated that the cost of incentive trips is not incurred necessarily by the participants, less successful colleagues doing the same or similar jobs will not have needed to incur the expense. Nor is the expense incurred in the performance of the duties of the employment.

Any enquiries from the promoters of such events about the potential tax liabilities for participants should be dealt with in accordance with SE11235 onward.