New queries, issue 4449

Course and holiday

Will the costs of a professional course and holiday be allowable or a benefit charge?

A qualified chiropractor trades through a limited company. He is the sole director/employee and the company’s shares are held jointly with his wife.

He is proposing to attend a four-day skills update course and conference in the US. His wife is planning to join him on the trip and they will take the opportunity to take a holiday in America with the costs relating to that additional holiday time met personally.

Our question not surprisingly is the extent to which:

• the company can claim a corporation tax deduction on costs relating to the trip; and
• the chiropractor will be taxed in relation to a benefit-in-kind.

Readers’ thoughts on these two points would be appreciated together with any pointers...