Finance Act 2002 (c. 23)

Part 3 Income tax, corporation tax and capital gains tax

Chapter 2 Other provisions

Employment income and related matters

41 Parliamentary visits to EU candidate countries: tax treatment of members' expenses

(1) This section amends—

(a) section 200 of the Taxes Act 1988 (which treats allowances paid to a Member of Parliament in respect of, among other things, expenses of visiting the national parliament of another member State as not being income for tax purposes), and

(b) section 200ZA of that Act (which makes corresponding provision in relation to members of the Scottish Parliament, the National Assembly for Wales and the Northern Ireland Assembly).

(2) In subsection (3)(b) of section 200, and in paragraph (b) of the definition of “EU travel expenses” in subsection (3) of section 200ZA, after “of another member State” insert “or of a candidate country”.

(3) After subsection (3) of each section insert—

“(4) In subsection (3) above “candidate country” means Bulgaria, Cyprus, the Czech Republic, Estonia, Hungary, Latvia, Lithuania, Malta, Poland, Romania, the Slovak Republic, Slovenia or Turkey.

(5) The Treasury shall by order made by statutory instrument make such amendments to the definition in subsection (4) above as are necessary to secure that the countries listed are those that are from time to time candidates for membership of the European Union.”.

(4) This section applies in relation to sums paid on or after 1st April 2002.