§ Mr. ForthTo ask the Chancellor of the Exchequer what tax liability arises when ministerial official accommodation is improved out of public funds. [32954]
§ Dawn PrimaroloIt is accepted by the Inland Revenue that Government Ministers occupying official residences by reason of their office meet the statutory conditions (mainly in Section 145(4) of ICTA 1988) for exemption from a tax charge on provided living accommodation or on any structural alterations or additions made to it. Where improvements to the accommodation consist of repairs, decoration or furniture, tax is charged on a benefit limited by Section 163(2) of ICTA 1988 to 10 per cent. of the taxable Ministerial salary and any other benefits.
The same rules apply for Ministers of the Crown as for other office holders or employees.