§ Mr. Deakinsasked the Secretary of State for the Home Department if he will introduce legislation to remove tax on police rent allowances.
§ Mr. Giles ShawTax legislation is a matter for my right hon. Friend the Chancellor of the Exchequer. But under regulation 50 of the Police Regulations 1979, the tax paid on rent allowance is reimbursed by police authorities in the following financial year by means of compensatory grant. Rent allowance is thus effectively tax free.