Special Commissioners' Decision

ALLISON PLAGER reports a recent Special Commissioners' case.

No relief for therapy

The appellant, who was a doctor and psychiatrist, was required by his employer, the National Health Service, to undergo personal psychotherapy during his appointment. The National Health Service paid for half of the fees, but the appellant had to fund the balance. He therefore claimed the fees not paid by the employer in his self-assessment tax return.

The Special Commissioner said she had considerable sympathy for the appellant, as he clearly believed that he should be allowed a deduction for the therapy fees, as the therapy was a condition of his employment. She said that it was a borderline case as to whether or not the deduction be allowed, but decided finally that there was no authority allowing it. The Commissioner considered the facts in Simpson v Tate 9 TC 314 and Blackwell v Mills 26 TC 468 which she felt were particularly relevant.

She said that the personal psychotherapy sessions enabled the appellant to acquire his additional qualification in psychotherapy, and were not in the performance of his duties as, when he was undergoing the therapy, he was not performing the duties under his contract of employment. The psychotherapy sessions enabled the appellant to acquire the qualification to perform his job better. It was especially relevant that the employer bore only half the cost, and that it was up to the appellant to arrange the times of the sessions.

The Commissioner accepted that the psychotherapy sessions were a condition of employment, as shown by the letter of employment, but said that the case had to be decided on the actual facts.

The appeal failed because the Commissioner concluded that the appellant was not necessarily obliged to incur the expense of the personal psychotherapy sessions wholly, exclusively and necessarily in the performance of his duties.

(Dr Everest Snowdon (SpC 282).)

Issue: 3827 / Categories: