SE32520 - Other expenses: education and training - examination fees

Examination fees paid to enable an employee to sit professional and other examinations in order to obtain qualifications are not deductible under Section 198(1) ICTA 1988. They may improve the ability of the employee to do his or her job but they are not incurred in performing its duties, see SE31650.

The leading case is Lupton v Potts (45TC643) in which an articled clerk was refused a deduction for a fee paid to sit the Law Society exams. The expense was not incurred necessarily and exclusively in performing the duties of the employment that the clerk held.

There are other mechanisms by which relief may be obtained for the cost of work- related training. If a training course is paid for or reimbursed by the employer see SE01210 and SE05000. If the cost is met by the employee a deduction was available by concession in certain circumstances but only for payments made up to 31 August 2000, see SE32540.