Where certain conditions are met (see EIM60007) council tax paid on behalf of, or reimbursed to, a minister is not treated as employment income of the minister.
Where those conditions are not met there may still be no
liability to income tax on the minister in respect of council tax
paid for by the church on the accommodation the minister lives in.
This is because in certain circumstances local government
legislation provides that the council tax liability falls on the
church rather than the minister. So when the church pays the
council tax it is paying its own liability. There is no benefit to
the minister.
The council tax liability can only fall on the church where
the dwelling is used by the minister to perform the duties of his
or her office. Additionally:
