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HMRC internal manual

Employment Income Manual

Ministers of religion: exemption of income: statutory amounts and statutory deductions

Section 290 ITEPA 2003

For a summary of the conditions that have to be met for a minister to get exemption from a tax charge on some earnings connected with the occupation of property, see EIM60007. Where these conditions are met certain earnings are exempt from liability to Income Tax; see EIM60011.

Included in the exempt earnings are sums paid on the minister’s behalf or reimbursed in respect of statutory amounts or statutory deductions.

Statutory amounts and statutory deductions are amounts paid and deductions made in compliance with any Act of Parliament or Measure of the Church of England. The only ones you are likely to meet are council tax and water charges.

Where the conditions in EIM60007 are not met there may still be no liability to Income Tax on the minister where the Church pays the council tax. For further details, see EIM60014.