Which members of parliament are prevented from claiming a tax deduction for accommodation expenses under section 360?

Section 360 applies to elected members of the House of Commons, the Scottish Parliament, the National Assembly for Wales, and the Northern Ireland Assembly. These members cannot claim a tax deduction from their earnings for residential or overnight accommodation expenses under the general deduction rules or under section 373 relating to non-resident employees performing duties in the United Kingdom.

What qualifies as accommodation expenses under section 360 of the Income Tax (Earnings and Pensions) Act 2003?

Accommodation expenses are defined as any costs incurred in providing or using residential or overnight accommodation that enables the member to perform their parliamentary or assembly duties. The accommodation must be connected with duties carried out at or near where the parliament or assembly sits, or in or around the constituency or region the member represents.

Why does section 360 disallow accommodation expense deductions for parliamentary members?

Under sections 292 and 293 of the Act, allowances paid to members for residential or overnight accommodation are already exempt from income tax. Section 360 ensures members cannot also claim a separate tax deduction for the same costs. The two provisions work together so the allowance is untaxed and the corresponding expense cannot be deducted.

Is there an additional rule for House of Commons members regarding accommodation expenses?

Yes. For House of Commons members specifically, subsection (3) of section 292 also applies for the purposes of section 360. That subsection contains supplementary provisions relevant to how accommodation expenses are treated for House of Commons members, providing additional rules beyond those applicable to members of the devolved parliaments and assemblies.

Income Tax (Earnings and Pensions) Act 2003 section 360

Disallowance of certain accommodation expenses of MPs and other representatives

Section 360 prevents members of the UK's parliaments and assemblies from claiming a tax deduction from their earnings for residential or overnight accommodation expenses.

Members of the House of Commons, Scottish Parliament, National Assembly for Wales, and Northern Ireland Assembly cannot deduct accommodation expenses from their earnings
Accommodation expenses cover costs of providing or using residential or overnight lodging to enable a member to carry out their duties
The accommodation must relate to duties performed either where the parliament or assembly sits, or in the member's constituency or region
This disallowance complements the separate exemption regime under which accommodation allowances paid to members are exempt from income tax

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