Income Tax (Earnings and Pensions) Act 2003 (c. 1)

Part 4 U.K. Employment income: exemptions

Modifications etc. (not altering text)

C1 Pt. 4 modified (10.6.2021) by Finance Act 2021 (c. 26), s. 26(3)

Chapter 8 U.K. Exemptions: special kinds of employees

MPs, government ministers etc. U.K.

291 Termination payments to MPs and others ceasing to hold office U.K.

(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—

[F1 (a) made under section 5(1) of the Parliamentary Standards Act 2009 in connection with a person's ceasing to be a member of the House of Commons,]

(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), [F2 or under Article 13 of the Statute for Members of the European Parliament (transitional allowances),]

(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,

[F3 (e) made under section 20(3) of the Government of Wales Act 2006 to a person—

(i) ceasing to be a member of the National Assembly for Wales; or

(ii) ceasing to hold office as the Presiding Officer, Deputy Presiding Officer, or such other office in connection with the Assembly as the Assembly may determine, but continuing to be an Assembly Member,

(ea) made under section 53(3) of the Government of Wales Act 2006 to a person ceasing to be a member of the Welsh Assembly GovernmentF4 ...]

(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[F5 , or

(g) made under section 26A of the Greater London Authority Act 1999 (payments on ceasing to hold office as Mayor of London or as a member of the London Assembly).]

(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.

Textual Amendments

F1 S. 291(2)(a) substituted (with effect in accordance with s. 15(2) of the amending Act) by Finance Act 2012 (c. 14), s. 15(1)

F2 Words in s. 291(2)(c) inserted (with effect in accordance with s. 56(3) of the amending Act) by Finance Act 2009 (c. 10), s. 56(2)

F3 S. 291(2)(e)(ea) substituted for s. 291(2)(e) (25.5.2007) by The Government of Wales Act 2006 (Consequential Modifications and Transitional Provisions) Order 2007 (S.I. 2007/1388), Sch. 1 para. 102

F4 Word in s. 291(2)(ea) omitted (with effect in accordance with s. 52(4) of the amending Act) by virtue of Finance Act 2008 (c. 9), s. 52(2)

F5 S. 291(2)(g) and word inserted (with effect in accordance with s. 52(4) of the amending Act) by Finance Act 2008 (c. 9), s. 52(3)

[F6 292 Accommodation expenses of MPs U.K.

(1) No liability to income tax arises in respect of a payment made to a member of the House of Commons under section 5(1) of the Parliamentary Standards Act 2009 if the payment is—

(a) expressed to be made in respect of accommodation expenses, or

(b) related to or in consequence of a payment expressed to be so made.

(2) “Accommodation expenses” means expenses necessarily incurred on overnight accommodation that is required for the performance of the member's parliamentary duties in or about the Palace of Westminster or the member's constituency.

(3) But the cost of an overnight stay in a hotel that was required only because, on that night, the member had been required to be at the House of Commons because the House was sitting late does not count as accommodation expenses for the purposes of this section, unless the member had been required to be at the House because it was sitting beyond 1 a.m.

(4) Subsection (1) does not apply to a loan for a deposit payable at the commencement of a tenancy.

[F7 (5) The reference in subsection (1) to a payment made to a member of the House of Commons under section 5(1) of the Parliamentary Standards Act 2009 includes a payment made under that section to another person at the direction of a member (see section 6(7) of that Act).]]

Textual Amendments

F6 S. 292 substituted (with effect in accordance with Sch. 4 para. 1(4)(5) of the amending Act) by Finance (No. 2) Act 2010 (c. 31), Sch. 4 para. 1(2)

F7 S. 292(5) inserted (with effect in accordance with s. 37(2) of the amending Act) by Finance Act 2011 (c. 11), s. 37(1)

293 Overnight expenses of other elected representatives U.K.

(1) No liability to income tax arises in respect of a payment to which this section applies if it is expressed to be made in respect of a member’s necessary overnight expenses.

(2) This section applies to payments—

(a) made to members of the Scottish Parliament under section 81(2) of the Scotland Act 1998 (c. 46),

(b) made to members of the National Assembly for Wales under [F8 section 20(2) of the Government of Wales Act 2006 or to a member of the Welsh Assembly Government under section 53(2) of that Act], or

(c) made to members of the Northern Ireland Assembly under section 47(2) of the Northern Ireland Act 1998 (c. 47).

(3) In this section “a member’s necessary overnight expenses” means additional expenses necessarily incurred by a member for the purpose of performing duties as a member in staying overnight away from the member’s only or main residence—

(a) in the area in which the Parliament or Assembly to which the member belongs sits, or

(b) in the constituency or region which the member represents.

Textual Amendments

F8 Words in s. 293(2)(b) substituted (25.5.2007) by The Government of Wales Act 2006 (Consequential Modifications and Transitional Provisions) Order 2007 (S.I. 2007/1388), Sch. 1 para. 103

[F9 293A UK travel and subsistence expenses of MPs U.K.

(1) No liability to income tax arises in respect of a payment made to a member of the House of Commons under section 5(1) of the Parliamentary Standards Act 2009 if the payment is expressed to be made—

(a) in respect of relevant UK travel expenses, or

(b) in respect of relevant subsistence expenses.

(2) “Relevant UK travel expenses” means expenses necessarily incurred on journeys of the following kinds within the United Kingdom—

(a) journeys made by the member that are necessary for the performance of the member's parliamentary duties, and

(b) if the member shares caring responsibilities with a spouse or partner, journeys made by the spouse or partner between the member's London Area residence and the member's constituency residence.

(3) “Relevant subsistence expenses” means expenses necessarily incurred on an evening meal (excluding alcoholic drinks) eaten on the Parliamentary Estate, where the member is required to be at the House of Commons because the House is sitting beyond 7.30 p.m.

(4) “Caring responsibilities” and “London Area” have the same meaning in subsection (2)(b) as they have in the scheme in effect for the time being under section 5 of the Parliamentary Standards Act 2009.]

Textual Amendments

F9 S. 293A inserted (with effect in accordance with Sch. 4 para. 2(2)(3) of the amending Act) by Finance (No. 2) Act 2010 (c. 31), Sch. 4 para. 2(1)

[F10 293B UK travel expenses of other elected representatives U.K.

(1) No liability to income tax arises in respect of a payment to which this section applies if it is expressed to be made in respect of relevant UK travel expenses.

(2) This section applies to payments—

(a) made to members of the Scottish Parliament under section 81(2) of the Scotland Act 1998,

(b) made to members of the National Assembly for Wales under section 20(2) of the Government of Wales Act 2006 or to a member of the Welsh Assembly Government under section 53(2) of that Act, or

(c) made to members of the Northern Ireland Assembly under section 47(2) of the Northern Ireland Act 1998.

(3) In this section “relevant UK travel expenses” means expenses necessarily incurred on journeys of the following kinds within the United Kingdom—

(a) journeys within subsection (4) made by the member that are necessary for the performance of his or her duties as a member;

(b) if the member shares caring responsibilities with a spouse or partner, journeys made by the spouse or partner between the constituency or region and the member's parliamentary home.

(4) The journeys referred to in subsection (3)(a) are those—

(a) between the constituency or region and the Parliament or Assembly to which the member belongs,

(b) between the constituency or region and the member's parliamentary home, or

(c) within the constituency or region, but not excluded by subsection (5).

(5) A journey is excluded if—

(a) in the case of a member who has only one local office, it is between the member's local home and that office, and

(b) in any other case, it is between the member's local home and the principal local office.

(6) In this section—

• “constituency or region”, in relation to a member, means the constituency or region which the member represents and the area within 20 miles of the boundary of that constituency or region;

• “local office”, in relation to a member, means an office which is situated in the constituency or region and occupied by the member for the purposes of performing duties as a member;

• “the member's local home” means a residence of the member situated in the constituency or region;

• “the member's parliamentary home” means the member's only or main residence in the area comprising—

  (a)

  the main site of the Parliament or Assembly to which the member belongs, and

  (b)

  the area within 20 miles of that site;

• “principal local office”, in relation to a member, means the local office most frequently occupied by the member for the purposes of performing duties as a member.

(7) A person has “caring responsibilities” if the person—

(a) has parental responsibility for a dependent child aged under 17 or for a child aged 17 or 18 who is in full-time education, or

(b) is the primary carer for a family member in receipt of—

(i) attendance allowance,

(ii) disability living allowance at the middle or highest rate for personal care,

(iii) the daily living component of personal independence payment, or

(iv) constant attendance allowance at or above the maximum rate with an industrial injuries disablement benefit, or the basic (full day) rate with a war disablement pension.

(8) The Treasury may by order amend the definition of “caring responsibilities” in subsection (7).]

Textual Amendments

F10 S. 293B inserted (with effect in accordance with s. 10(2) of the amending Act) by Finance Act 2013 (c. 29), s. 10(1)

[F12 294 [F11 European] travel expenses of MPs and other representatives U.K.

(1) No liability to income tax arises in respect of a sum that is paid to—

(a) a member of the House of Commons under section 5(1) of the Parliamentary Standards Act 2009,

(b) a member of the Scottish Parliament under section 81(2) of the Scotland Act 1998,

(c) a member of the National Assembly for Wales under section 20(2) of the Government of Wales Act 2006 or a member of the Welsh Assembly Government under section 53(2) of that Act, or

(d) a member of the Northern Ireland Assembly under section 47(2) of the Northern Ireland Act 1998,

and expressed to be made in respect of European travel expenses.]

[F13 (2) “European travel expenses” means the cost of, and any additional expenses incurred in, travelling between the United Kingdom and a relevant European location.

(3) “Relevant European location” means—

(a) a European Union institution or agency, or

(b) the national parliament of—

(i) another member State,

(ii) a candidate or applicant country, or

(iii) [F14 any other country that is a member of the Council of Europe.]

(4) The Treasury may by order amend subsection (3) by—

(a) adding a European location,

(b) removing a European location, or

(c) varying the description of a European location.]

Textual Amendments

F11 Word in s. 294 heading substituted (with effect in accordance with s. 82(5) of the amending Act) by Finance Act 2004 (c. 12), s. 82(4)

F12 S. 294(1) substituted (with effect in accordance with Sch. 4 para. 1(4)(5) of the amending Act) by Finance (No. 2) Act 2010 (c. 31), Sch. 4 para. 3(2)

F13 S. 294(2)-(4) substituted (with effect in accordance with s. 82(5) of the amending Act) by Finance Act 2004 (c. 12), s. 82(3)

F14 S. 294(3)(b)(iii) substituted (with effect in accordance with Sch. 4 para. 3(4)(5) of the amending Act) by Finance (No. 2) Act 2010 (c. 31), Sch. 4 para. 3(3)

295 Transport and subsistence for Government ministers etc. U.K.

(1) No liability to income tax arises in respect of the provision of transport or subsistence provided or made available by or on behalf of the Crown to—

(a) the holder of a ministerial office, or

(b) a member of the family or household of the holder of a ministerial office.

(2) No liability to income tax arises in respect of payments and reimbursements by or on behalf of the Crown of expenses incurred in connection with the provision of transport or subsistence to a person within subsection (1).

(3) “Ministerial office” means—

(a) an office in Her Majesty’s Government in the United Kingdom,

(b) any other office which is one of the offices and positions in respect of which salaries are payable under section 1 of the Ministerial and other Salaries Act 1975 (c. 27), and

(c) an office under one of the following Acts which corresponds to an office within paragraph (a) or (b)—

(i) the Scotland Act 1998 (c. 46),

(ii) [F15 the Government of Wales Act 2006], or

(iii) the Northern Ireland Act 1998 (c. 47).

(4) In determining whether a particular person holds an office within subsection (3)(b), it is irrelevant whether or not a salary is paid or payable to that person under the Ministerial and other Salaries Act 1975.

(5) In this section references to the provision of transport to a person include references to—

(a) the provision or making available to that person of a vehicle with or without a driver,

(b) the provision of fuel for a vehicle provided or made available to that person, and

(c) the provision of any other benefit in connection with such a vehicle.

(6) In this section—

(a) “subsistence” includes food and drink and temporary living accommodation, and

(b) “vehicle” means a mechanically propelled road vehicle.

Textual Amendments

F15 Words in s. 295(3)(c)(ii) substituted (25.5.2007) by The Government of Wales Act 2006 (Consequential Modifications and Transitional Provisions) Order 2007 (S.I. 2007/1388), Sch. 1 para. 105