§ Mr. Wareingasked the Chancellor of the Exchequer what representations he has received on the regulations governing exemption from tax on lodging allowances; what has been the nature of such representations; what plans he has to amend the regulations; and if he will make a statement.
§ Mr. Moore[pursuant to his reply, 3 February 1986, c. 69]: I assume the hon. Member has in mind lodging allowances that an employee might receive from his employer. These are not treated as taxable income where they are paid to cover the additional accommodation costs incurred by an employee as a result of his being required temporarily to work away from his normal place of work. Representations are received from time to time suggesting that the schedule E rules should be changed so that lodging allowances paid to an employee in other circumstances should not be taxed either. There are no plans to change the present rules.