SE31991 - Travel expenses: general - overseas conferences, seminars and study tours - example

A company that employs sales agents invites the most successful of them to an annual sales conference in Marbella. All expenses are paid by the company. The conference lasts for 7 days but there are only 2 formal sessions; a pep talk by the managing director and a seminar on sales technique. The rest of the programme consists of social events.

The benefit of the conference is chargeable under Section 154 ICTA 1988 on directors or employees within Part V Chapter II ICTA 1988, see SE20005 onward. No deduction from that benefit under Section 198 ICTA 1988, as extended by Section 156(8) ICTA 1988 can be permitted. The cost is not incurred necessarily in the performance of the duties of the employment, see SE31950.