Part 4Employment income: exemptions

Chapter 8Exemptions: special kinds of employees

MPs, government ministers etc.

291Termination payments to MPs and others ceasing to hold office

1

No liability to income tax in respect of earnings arises by virtue of any grant or payment to which this section applies (but see Chapter 3 of Part 6: payments and benefits on termination of employment etc.).

2

This section applies to grants and payments—

a

made in accordance with a resolution of the House of Commons to a person ceasing to be a Member of that House on a dissolution of Parliament,

b

made under section 4 of the Ministerial and other Pensions and Salaries Act 1991 (c. 5) (grants to persons ceasing to hold certain ministerial and other offices),

c

made under section 3 of the European Parliament (Pay and Pensions) Act 1979 (c. 50) (resettlement grants for persons ceasing to be Representatives),

d

made under section 81(3) of the Scotland Act 1998 (c. 46) to a person—

i

ceasing to be a member of the Scottish Parliament on its dissolution, or

ii

ceasing to hold an office corresponding to a relevant office,

e

made under section 18(1) of the Government of Wales Act 1998 (c. 38) to a person ceasing to be a member of the National Assembly for Wales on the expiry of the member’s term of office, or

f

made under section 48(1) of the Northern Ireland Act 1998 (c. 47) to a person—

i

ceasing to be a member of the Northern Ireland Assembly on its dissolution, or

ii

ceasing to hold an office corresponding to a relevant office.

3

In this section “a relevant office” has the same meaning as in section 4 of the Ministerial and other Pensions and Salaries Act 1991.