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Where Taxpayers and Advisers Meet

Removal Benefit

amitr19
Posts: 161
Joined: Wed Aug 06, 2008 4:00 pm

Removal Benefit

Postby amitr19 » Mon Mar 05, 2018 12:35 pm

Hi All

We've got a new employee who is relocating closer to work and who has been offered a relocation package.

Would a mileage claim of 45p per mile be eligible for tax free claim subject to the £8k limit?

cheers
AR

bd6759
Posts: 3090
Joined: Sat Feb 01, 2014 3:26 pm

Re: Removal Benefit

Postby bd6759 » Mon Mar 05, 2018 5:33 pm

That's not a relocation cost.

amitr19
Posts: 161
Joined: Wed Aug 06, 2008 4:00 pm

Re: Removal Benefit

Postby amitr19 » Tue Mar 06, 2018 10:00 am

I would assume it should qualify if the travel is temporary until the person finds a home closer to work.

Removal or transfer costs: expenses and benefits to which Section 271 ITEPA 2003 applies: travelling and subsistence: employee
Section 281 ITEPA 2003
The employee’s travel and subsistence expenses and benefits that are within Section 281 are for:

preliminary visits to the new location
travelling from the old home to the new work location
travelling between the new home and the old work location (where the house move takes place before the job transfer)
temporary living accommodation (see EIM03117)
travelling between the old home and the temporary living accommodation
travelling from the new home to the temporary living accommodation (where the house move takes place before the job transfer)
travelling from the old home to the new home when the move takes place.

cheers
AR


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