Income Tax (Earnings and Pensions) Act 2003 section 292

Accommodation expenses of MPs

Section 292 provides an income tax exemption for certain accommodation-related payments made to Members of the House of Commons under the Parliamentary Standards Act 2009.

• Payments to MPs expressly for accommodation expenses, or related to such payments, are exempt from income tax.
• Accommodation expenses cover necessary overnight stays for parliamentary duties at or around the Palace of Westminster or in the member's constituency.
• Hotel costs for late sittings only qualify if the House sat beyond 1 a.m.; otherwise they are not treated as accommodation expenses.
• The exemption does not apply to loans for tenancy deposits, but does cover payments made to a third party at the member's direction.