Part 5Employment income: deductions allowed from earnings

Chapter 2Deductions for employee’s expenses

Expenses of ministers of religion

351Expenses of ministers of religion

1

A deduction is allowed from any earnings from any employment as a minister of a religious denomination for amounts incurred by the minister wholly, exclusively and necessarily in the performance of duties of such an employment.

2

If a minister of a religious denomination pays rent in respect of a dwelling-house, part of which is used mainly and substantially for the purposes of such duties, a deduction is allowed from the minister’s earnings from any employment as such a minister for—

a

one quarter of the rent, or

b

if less, the part of the rent that, on a just and reasonable apportionment, is attributable to that part of the dwelling-house.

3

If—

a

an interest in premises belongs to a charity or an ecclesiastical corporation, and

b

because of that interest and by reason of holding an employment as a minister of a religious denomination, the minister has a residence in the premises from which to perform the duties of the employment,

a deduction is allowed from the minister’s earnings from any such employment for part of any expenses borne by the minister on the maintenance, repair, insurance or management of the premises.

4

The amount of the deduction is—

A4-Bmath

where—

A is the amount of the expenses borne by the minister on the maintenance, repair, insurance or management of the premises, and

B is the amount of those expenses that are allowed under subsection (1).

5

In this section “charity” means a body of persons or trust established for charitable purposes only.

6

Subsection (1) needs to be read with section 359 (disallowance of travel expenses: mileage allowances and reliefs).