Commentary on Sections Example 3 Ne = £5,000; Da = 183; De = 183; Smg = 0 Section 336: Deductions for expenses: the general rule
1446.This section states the general rule relating to deductions allowed from earnings.
1447.The section derives from section 198(1)(b) of ICTA. This provision has been the subject of much litigation.
1448.Subsection (1) states the general rule: a deduction from earnings is allowed for an amount if the employee is obliged to incur and pay it as holder of the employment, and the amount is incurred wholly, exclusively and necessarily in the performance of the duties of the employment.
1449.Subsection (2), which is new, provides that the following sections in this Chapter contain additional rules allowing deductions for particular kinds of expenses, and rules preventing particular kinds of expenses from being deductible. This subsection, accordingly, emphasises the fact that deductions under the later sections in this Chapter do not depend on this section being satisfied first.
1450.Subsection (3) provides that no deduction is allowed under this section for an amount that is deductible under sections 337 to 342 (travel expenses).