SE32525 - Other expenses: education and training - education costs

No deduction should normally be permitted under Section 198(1) ICTA 1988 for expenses incurred by an employee for external education. This is so even where the subject of the education is closely relevant to the nature of the employment. The expenses are not deductible because they are not incurred in the performance of the duties of the employment, see SE31650.

The case law is summarised at SE32530.

There are two exceptions.

• A deduction is due where the external education is an integral part of the duties of the employment, see SE32535.
• A deduction was due by concession for payments made up to 31 August 2000 where the terms of Extra-Statutory Concession A64 are met, see SE32540.

In appropriate cases you should also consider the following advice.

• Where the expense of external education is paid for or reimbursed by the employer, see SE01210 and SE05000.
• Where payments are made to an employee who is enrolled at a university, technical college or similar educational establishment for at least one academic year and attends that establishment full-time for at least 20 weeks a year, see SE06200 and subsequent.
• Where the employee attends an overseas course, conference or study tour, see SE31950.

The extent to which the expense of external education can be deducted is illustrated by the examples beginning at example SE32545.