Income Tax (Earnings and Pensions) Act 2003 section 290

Accommodation benefits of ministers of religion

Section 290 provides an income tax exemption for certain accommodation-related benefits received by full-time ministers of religion who live in premises owned by a charity or ecclesiastical corporation.

• Full-time ministers of religion are exempt from income tax on statutory amounts paid or reimbursed, and statutory deductions reimbursed, in connection with qualifying premises owned by a charity or ecclesiastical corporation
• Where the minister holds lower-paid employment as a minister of religion, there is also no income tax on the payment or reimbursement of expenses connected with providing living accommodation in those qualifying premises
• The exemptions do not apply to any part of the premises from which the minister receives rental income
• Premises qualify only if they are owned by a charity or ecclesiastical corporation and the minister resides in them for the purpose of carrying out their ministerial duties by reason of that ownership and their employment