Tax relief for doctor’s accommodation expenses

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

He claimed the costs of the accommodation on the basis that they were wholly exclusively and necessarily incurred in the performance of his duties. HMRC said the taxpayer’s employment contract did not require him to rent premises close to the hospital and disallowed his claim.

The First-tier Tribunal said the taxpayer met the conditions in ITEPA 2003 s 336(1) and allowed his appeal in part.

HMRC appealed saying the First-tier Tribunal had erred in law.

The...