Income Tax (Trading and Other Income) Act 2005 section 43

Ministers of religion

Section 43 provides transitional rules allowing ministers of religion to claim a deduction for certain expenses that were incurred but not yet paid before the 2005-06 tax year.

• This provision applies to expenses incurred by a minister of a religious denomination on matters covered by section 159(3), such as the cost of maintaining a dwelling or related outgoings.
• The expenses must have been incurred in an accounting period that does not overlap with the basis period for 2005-06 or any subsequent tax year.
• The relevant portion of the expenses (as determined under section 159(4)) must not already have been included in any profit calculation for any tax year.
• Where these conditions are met, a deduction is allowed in the accounting period in which the expenses are actually borne (i.e. paid or settled).