EIM31941 - Travel expenses: general: directors' travelling expenses: travel by unpaid directors of not-for-profit companies
Section 241A ITEPA 2003
Section 241A legislates the rules that were previously set out in Extra Statutory Concession A4(b). It provides that no liability to Income Tax will arise in respect of a payment or reimbursement of travel expenses incurred by an unpaid director of a not-for-profit company where the travel is for the their necessary attendance at a place in the performance of the duties of the employment. The meaning of ‘necessary attendance’ is explained at EIM32270.
A not-for-profit company in this context means a company that does not carry on activities for the purpose of making profits for distribution.
Section 241A has effect in relation to expenses incurred on or after 6 April 2014. Expenses incurred prior to this date are dealt with under ESC A4(b), see EIM31925.