Finance Act 1999

Payments in respect of overnight expenses or EU travel U.K.

2 (1) After section 200 of the Taxes Act 1988 insert—

“200ZA Expenses of members of Scottish Parliament, National Assembly for Wales or Northern Ireland Assembly.

“200ZA (1) This section applies to payments made—

(a) to members of the Scottish Parliament under section 81(2) of the M1 Scotland Act 1998,

(b) to members of the National Assembly for Wales under section 16(2) of the M2 Government of Wales Act 1998, or

(c) to members of the Northern Ireland Assembly under section 47(2) of the M3 Northern Ireland Act 1998.

(2) If a payment to which this section applies is expressed to be made in respect of necessary overnight expenses or EU travel expenses, the payment shall not be regarded as income for any purpose of the Income Tax Acts.

(3) For the purposes of subsection (2) above—

• “necessary overnight expenses” are additional expenses necessarily incurred by the member for the purpose of performing duties as a member in staying overnight away from the member’s only or main residence, either in the area in which the body of which he is a member sits or in the constituency or region for which he has been returned, and

• “EU travel expenses” are the cost of, and any additional expenses incurred in, travelling between the United Kingdom and—

  (a)

  any European Union institution in Brussels, Luxembourg or Strasbourg, or

  (b)

  the national parliament of another member State.”

(2) For section 198(4) of that Act (exclusion of deduction in respect of expenditure for which parliamentary allowance may be given) substitute—

“(4) No deduction shall be made under this section in respect of expenditure incurred by—

(a) a member of the House of Commons, or

(b) a member of the Scottish Parliament, or

(c) a member of the National Assembly for Wales, or

(d) a member of the Northern Ireland Assembly,

in, or in connection with, the provision or use of residential or overnight accommodation to enable him to perform his duties as such a member in or about the place where the body of which he is a member sits or the constituency or region for which he has been returned.”

(3) For section 74 of the M4 Capital Allowances Act 1990 (exclusion of capital allowances in respect of expenditure for which parliamentary allowance may be given) substitute—

“74 Allowances not available: expenses of MPs and others.

No allowance shall be made under this Part in respect of expenditure incurred by—

(a) a member of the House of Commons, or

(b) a member of the Scottish Parliament, or

(c) a member of the National Assembly for Wales, or

(d) a member of the Northern Ireland Assembly,

in, or in connection with, the provision or use of residential or overnight accommodation to enable him to perform his duties as such a member in or about the place where the body of which he is a member sits or the constituency or region for which he has been returned.”

Marginal Citations

M1 1998 c.46.

M2 1998 c.38.

M3 1998 c.47.

M4 1990 c.1.