Income Tax (Earnings and Pensions) Act 2003 section 290A

Accommodation outgoings of lower-paid ministers of religion

Section 290A provides an income tax exemption for payments or reimbursements of certain household running costs for ministers of religion who are in lower-paid employment.

• Payments or reimbursements of accommodation outgoings for lower-paid ministers of religion are exempt from income tax
• Accommodation outgoings cover heating, lighting, cleaning of qualifying premises, and maintaining the garden of those premises
• The exemption does not apply where the minister receives an allowance intended to be used, wholly or partly, for paying accommodation outgoings — a separate rule under section 290B applies in that case
• Qualifying premises has the same meaning as in section 290, which deals with accommodation benefits for ministers of religion