Income Tax (Earnings and Pensions) Act 2003 section 253

Exception where provision for excluded purposes

Section 253 sets out the circumstances in which the work-related training exemption under section 250 does not apply, because the training provision is actually for an excluded purpose unrelated to genuine training.

• The work-related training exemption is withdrawn where facilities, benefits or reimbursed costs are provided for one or more excluded purposes rather than genuine training
• Excluded purposes include providing entertainment, recreation or leisure activities that are unconnected with imparting, improving or reinforcing work-related knowledge, skills or personal qualities
• Providing an inducement for the employee to remain in or accept employment, where that inducement is unconnected with genuine training, is also an excluded purpose
• Rewarding the employee for performing their duties or for performing them in a particular way is a further excluded purpose, regardless of any training connection