117 Expenses allowances

A charge to income tax under Schedule E arises under this section where expense payments are made to directors and employees of a body corporate which are not otherwise chargeable to tax. Such payments are treated as perquisites of the employment of the director or employee and are included in the assessable income of the director or employee for that year. However, this provision does not affect the deduction of allowable expenses (that is, expenses incurred wholly, exclusively and necessarily in the performance of the duties of the employment) under section 114.

Relevant Date: Finance Act 2021