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HMRC internal manual

Employment Income Manual

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HM Revenue & Customs
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Ministers of religion: exemption of income: heating, lighting, cleaning, gardening: excluded employments for 2015/2016 and earlier

Sections 290A and 290B ITEPA 2003 (formerly Extra-Statutory Concession A61)

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. For a summary of the earnings exempted see EIM60011.

One of the types of income exempted is where the minister is in an excluded employment for 2015/16 and earlier only (see EIM20007). Note that for the specific purpose of calculating whether or not the minister is in an excluded employment the income described here must be included.

Section 290A exempts sums paid on the minister’s behalf or reimbursed in respect of heating, lighting, cleaning or gardening expenses that are incurred by the minister..

Section 290B deals with an allowance paid to the minister which is intended, in whole or in part, to meet the above expenses. The allowance is exempt to the extent that it is actually used to meet those expenses.

Sections 290A and 290B apply from 6 April 2010. Before that date ESCA61 gave the same relief. The full text of ESC A61 is:

“Where a clergyman or minister of any religious denomination is provided, in consequence of his being the holder of such office, with a residence in premises owned or leased by a charity or ecclesiastical corporation from which to perform his duties, no tax is charged on sums paid on his behalf or reimbursed in respect of heating, lighting, cleaning and gardening expenses which are the contractual liability of the clergyman or minister.

Where an allowance is paid to the clergyman etc to meet such costs it will not be taxed except to the extent that it exceeds the costs actually incurred.

The concession does not apply where the clergyman or minister is in employment to which Chapter II Part V ICTA 1988 applies”. (Chapter II Part V ICTA 1988 applied to those who were not in an excluded employment).