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08 April 2008 / Mike Truman
Issue: 4153 / Categories: Comment & Analysis
How do MPs manage to claim allowances that other taxpayers cannot, and should they be able to do so? MIKE TRUMAN investigates

KEY POINTS

  • Only the Additional Costs Allowance is specifically exempted
  • The main residence rule does not have a power to nominate
  • Expenses should be 'necessary'
  • Why is 'home to work' travel allowed?

It started with a call from the Jeremy Vine show on Radio 2.

I have been on a couple of times in the past talking about tax they were discussing the latest row over MPs' expense allowances and someone had just asked whether they were taxable.

So they rang me and scrabbling around in my Yellow Book for a half-remembered provision I said that they were exempted by ITEPA 2003 s 292 adding that it was always helpful in such circumstances to have the power to write the legislation that governed your own tax affairs.

However the more I...

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