| Commentary

(1) The right to a deduction

| Commentary

E.     Deductions from Taxable Income

(1)     The right to a deduction

An employee may be entitled to deduct certain amounts from his gross taxable income, reducing the amount which is subject to income tax. The test for deductibility is extremely restrictive for those in employment. Under the ITEPA 2003 s 336 a deduction from earnings is allowed for an amount if:

  1.  

    —     the employee is obliged to incur and pay it as holder of the employment, and

  2.  

    —     the amount is incurred wholly, exclusively and necessarily in the performance of the duties of the

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