Accommodation outgoings of ministers of religion2
1
The Income Tax (Earnings and Pensions) Act 20032 is amended as follows.
2
In step 1 in section 218(1)3 (calculation of earnings rate for a tax year), after “exempt income”, insert “, other than any attributable to section 290A or 290B (accommodation outgoings of ministers of religion).”
3
After section 290 insert—
290AAccommodation outgoings of ministers of religion
1
No liability to income tax arises in respect of a person in lower-paid employment as a minister of a religious denomination by virtue of the payment or reimbursement of accommodation outgoings.
2
Subsection (1) does not apply if the minister is paid an allowance intended to be used, wholly or in part, for paying accommodation outgoings (as to which see section 290B).
3
In this section—
“accommodation outgoings” means amounts incurred by the minister in—
- a
heating, lighting or cleaning qualifying premises; or
- b
maintaining a garden forming part of qualifying premises;
“lower-paid employment” has the meaning given by section 217;
“qualifying premises” has the same meaning as in section 2904.
290BAllowances paid to ministers of religion in respect of accommodation outgoings
1
This section applies where a person in lower-paid employment as a minister of a religious denomination is paid an allowance intended to be used, wholly or in part, for paying accommodation outgoings.
2
No liability to tax arises by virtue of the payment of the allowance to the extent that it is used for paying accommodation outgoings.
3
In this section—
“accommodation outgoings” and “lower-paid employment” have the same meanings as in section 290A;
“qualifying premises” has the same meaning as in section 290.
4
The amendments made by this article have effect for the tax year 2010-2011 and subsequent tax years.