§ I have considered the various suggestions that have been put forward for giving tax relief to the clergy. For reasons that have commended themselves to all my predecessors who have had to consider this question I cannot accept proposals for the exemption of Easter offerings. I am, however, prepared to make a concession to which considerable importance is attached by the Churches Main Committee.
§ Under decisions of the courts, certain ministers of religion, who live rent free in houses provided by their churches or congregations, are regarded as "representative occupiers"; and this means that they are not liable to pay tax under Schedule A. Other clergymen, for example, the Church of England parson, are, in law, beneficial occupiers of their residences and, as such, are liable.
§ I do not think that this legalistic difference of treatment is justified by any real difference in the use of the minister's dwelling house. That was the view of the Royal Commission. I propose, therefore, to put forward a Clause in the Finance Bill to provide that where any minister of religion, by virtue of his office, lives in a house which belongs to him as incumbent, or is owned by or on behalf of his church, he shall be treated for tax purposes as though he were a representative occupier and not liable for Schedule A tax.