SE60014 - Ministers of religion: exemption of income; Council Tax
Section 332(2) and (4) ICTA 1988
Where certain conditions are met (see
SE60007) Council Tax paid on behalf of,
or reimbursed to a minister is not treated as Schedule E income of
the minister.
Where those conditions are not met there may still be no
Schedule E charge 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
office. Additionally
- In England and Wales the church must be the owner of the dwelling. There is an exception for Church of England ministers where the property can be owned by the minister and the minister will still not be liable for the Council Tax.
- In Scotland the dwelling must be the sole or main residence of the minister. It does not matter who owns it.
