Income Tax (Trading and Other Income) Act 2005 section 159

Ministers of religion

Section 159 sets out special rules for calculating the trading profits of self-employed ministers of religion, particularly regarding deductions for housing-related expenses.

• A minister who rents a dwelling used mainly and substantially for duties may deduct one-quarter of the rent, or the just and reasonable proportion attributable to the duty-related part if that is less
• Where premises belong to a charity or ecclesiastical corporation and the minister resides there for duty purposes, a deduction is allowed for part of maintenance, repair, insurance or management costs
• The charity/ecclesiastical corporation premises deduction is calculated as one-quarter of total qualifying expenses minus any amount already deductible under general trading rules
• General trading expense rules under section 34 of the Act (wholly and exclusively for the profession) continue to apply alongside these special provisions, ensuring ministers are not disadvantaged