Travel and subsistence framework discussion paper

23 September 2015

The government has published a discussion paper that sets out the case for change to the current rules for tax relief on travel and subsistence rules.

Background

In response to the Office of Tax Simplification’s (OTS) January 2014 report on the tax treatment of employee benefits and expenses, ‘Review of employee benefits and expenses: second report, the government announced at Budget 2014 that it intended to review the rules underlying the taxation of travel and subsistence expenses.

On 31 July 2014 the government launched the first stage of that review. It sits alongside the consultations on expenses and benefits and the broader call for evidence on remuneration launched on 18 June, both of which are intended to complement this work.

The government has now published a discussion paper that sets out the case for change to the current rules for tax relief on travel and subsistence rules. This discussion paper has been developed following an initial round of discussions with stakeholders who got in touch with the review team shortly after the review was launched in July 2014.

The Travel and subsistence framework discussion paper outlines a potential framework to tackle some of the issues that were identified during these discussions. The government would now like to seek views on this framework and has set out a number of key questions to test with interested stakeholders.

CIPP comment

The Policy Team will be asking for member opinion over the next few weeks to help inform the CIPP’s response to this discussion paper.