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

Allowances paid to lower-paid ministers of religion in respect of accommodation outgoings

Section 290B provides a tax exemption for allowances paid to lower-paid ministers of religion where those allowances are used to meet accommodation outgoings.

• This section applies to ministers of religion who are in lower-paid employment and receive an allowance intended for paying accommodation outgoings.
• No income tax liability arises on the allowance to the extent that it is actually used to pay accommodation outgoings.
• The exemption only covers the portion of the allowance that is genuinely spent on accommodation outgoings — any surplus used for other purposes would not be exempt.
• The definitions of "accommodation outgoings" and "qualifying premises" follow those used in the related exemptions for ministers of religion under sections 290A and 290 respectively.