A proportion of trainee doctor's accommodation costs were allowable

The taxpayer was a dentist based in Southampton but he wished to become a maxillofacial surgeon. The only available training position was at a hospital in south London. As his family were established in Southampton it was not possible for him to move to London. However he found commuting exhausting so he found accommodation in London close to the hospital. He stayed there during the week and one weekend in six for on-call duties.

He claimed that the costs of the accommodation were wholly exclusively and necessarily incurred in the performance of his duties. His professional obligations required him to put patients’ interests before his own and when he was on-call he had to be within 30 minutes of a call.

HMRC said the taxpayer’s employment contract did not require him to rent premises close to the hospital and disallowed his claim. It also imposed a penalty...