§ Mr. CohenTo ask the Chancellor of the Exchequer if he will list the broad categories of spending which are tax deductible under the memorandum of understanding on royal taxation; and what limitations there are on the items which are classified as tax deductible.
§ Mr. DorrellAppendix A to the memorandum of understanding sets out rules for determining the head of state expenses deductible from Privy Purse income, so that income tax falls only on the income used for the Queen's personal expenditure. Paragraph 4 lists nine categories of deductible expenses. Similarly, appendix B to the 565W memorandum sets out four categories of expenses for the income of the Prince of Wales from the Duchy of Cornwall. The memorandum of understanding makes it clear that only official expenses within these categories are deductible.