Part 4: Income tax, corporation tax and capital gains tax Section 29: Travel expenses of members of local authorities etc. Details of the section
Subsection (1) amends Part 4 of the Income Tax (Earning and Pensions) Act (ITEPA) 2003 - Employment Income: Exemptions.
	Subsection (2) updates a reference to the definition of business travel in section 229(2) ITEPA 2003 (mileage allowance payments) to make clear that it includes journeys which are dealt with by new section 235A.
	Subsection (3) inserts a new section 235A (Journeys made by members of local authorities etc.) into Chapter 2, Part 4 of ITEPA 2003 which deals with mileage allowances and passenger payments where an employee uses their own vehicle for business travel.
	New subsection 235A(1) sets out that, subject to new subsections 235A(2) and (3), a qualifying journey by a member of a relevant authority is to be treated as business travel for the purposes of Chapter 2 if a qualifying payment is made by the authority. Under new subsections 235A(1)(a) and (b) the qualifying payment must be made to the member in respect of expenses related to their use of a vehicle that Chapter 2 applies to, or to another member of the authority for carrying the member as a passenger on the journey.
	New subsection 235A(2) provides that a qualifying journey is not to be treated as business travel for the purposes of calculating mileage allowance relief.
	New subsection 235A(3) sets out that where a member is undertaking a qualifying journey and receives a qualifying payment for carrying a passenger, the journey will not be treated as business travel for the passenger for the purposes of section 233 and section 234 ITEPA 2003 (passenger payments and the approved amounts for passenger payments), unless the passenger is also a member of the authority.
	New subsection 235A(4) defines a qualifying journey by a member of a relevant authority for the purposes of this section. A qualifying journey must be between the member’s home and permanent workplace and the home must be either in the area of the authority or within 20 miles of the boundary of the area.
	New subsection 235A(5) sets out that "permanent workplace" has the same meaning as the existing definition at section 339 ITEPA 2003.
	New subsection 235A(6)(a) provides a power to use regulations to specify local authorities, or bodies that have similar or related functions or purposes, that are to be relevant authorities for the purposes of this section. New subsections 235A(6)(b) and (c) set out that the power can be used to prescribe the circumstances in which a person is regarded as a member of a relevant authority, and to define a "qualifying payment" for the purposes of this section.
	New subsection 235A(7) allows these regulations to contain transitional provision and savings.
	Subsection (4) inserts a new subsection (1A) (Travel expenses of members of local authorities etc.) into the interpretation of Chapter 2 at section 236 ITEPA 2003, advising that journeys that are treated as business travel for the purposes of certain provisions in Chapter 2 are set out in section 235A.
	Subsection (5) inserts new section 295A into Chapter 8 - Exemptions: Special Kinds of Employees.
	New subsection 295A(1) provides an exemption from income tax for qualifying payments made to a member of a relevant authority for travel expenses incurred. For the purposes of this section, "travel expenses" include the costs of travel together with any subsistence expenditure and other associated costs that are incurred in making the journey.
	New subsections 295A(1)(a) and (b) apply the exemption to payments of expenses other than those relating to the member’s use of their own vehicle and covered by existing exemptions in Chapter 2 or expenses specifically excluded by new subsection 295A(2).
	New subsection 295A(2) sets out that the exemption will not apply to expenses incurred on journeys between the member’s home and permanent workplace where the member’s home is more than 20 miles outside the boundary of the area of the relevant authority.
	New subsection 295A(3) sets out that "permanent workplace" has the same meaning as the existing definition at section 339 ITEPA 2003.
	New subsection 295A(4) provides a power to use regulations to specify local authorities, or bodies that have similar or related functions or purposes, that are to be relevant authorities for the purposes of this section. New subsections 235A(6)(b) and (c) set out that the power can be used to prescribe the circumstances in which a person is regarded as a member of a relevant authority, and to define a "qualifying payment" for the purposes of this section.
	New subsection 295A(5) allows these regulations to contain transitional provision and savings.
	Subsection (6) substitutes "section 235A and 236(1)" for "section 236(1)" in the index of defined expressions in Schedule 1.
	Subsection (7) provides that this section will have effect for the tax year 2016-17 and subsequent tax years.