Income Tax (Earnings and Pensions) Act 2003 section 351

Expenses of ministers of religion

Section 351 provides special rules allowing ministers of religion to deduct certain expenses from their employment earnings, including general duty expenses, a proportion of rent for a home used for duties, and a proportion of property upkeep costs where the minister resides in premises owned by a charity or ecclesiastical corporation.

• Ministers may deduct expenses incurred wholly, exclusively and necessarily in performing their duties, but not where mileage allowance payments are received instead
• Where a minister rents a home partly used mainly and substantially for duties, a deduction of up to one quarter of the rent is allowed — or less if the portion of the home used for duties is smaller than one quarter
• Where a minister lives in premises owned by a charity or ecclesiastical corporation for the purpose of performing duties, a proportion of maintenance, repair, insurance or management costs borne by the minister may be deducted
• The deduction for charity or ecclesiastical corporation premises is calculated as one quarter of those property costs, minus any amount already deducted under the general expenses rule