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Thirty-six tax reliefs facing abolition

13 June 2011
Issue: 4308 / Categories: News , condoc , OTS , reliefs , Admin
Government moves to minimise impact

Further to March's Office of Tax Simplification (OTS) report on tax reliefs, the government has published a consultation document seeking additional evidence on the impact of removing 36 reliefs.

Comments are being sought on the transitional arrangements that might help to minimise the effect of abolition.

The reliefs to be axed include:

  • Cycle to work days – provision of meals
  • Late night taxis
  • Luncheon vouchers
  • Disadvantaged area relief
  • Land remediation relief
  • Compensation for mis-sold pensions

Responses should be sent via email no later than 31 August 2011.

Issue: 4308 / Categories: News , condoc , OTS , reliefs , Admin
1 Comments Hide
ipauth, 06/14/2011 16:47:00

Does anybody understand how MPs are taxed on late night taxis?

The Independent Parliamentary Standards Authority's Expenses Scheme and Guidance for MPs states: 

"Where the House of Commons sits late or when MPs undertake their parliamentary functions in the House of Commons until late at night, MPs may use their discretion in claiming for reimbursement of taxi fares for journeys from the House of Commons to a London Area residence, or for the cost of an overnight stay in a hotel. Taxis will be subject to an upper limit of £80 for each such journey. Hotels will be subject to an upper limit of £150 per night."

Section 293A ITEPA 2003 provides that "no liability to income tax  arises in respect of a payment made to a member of the House of Commons.... (i) in respect of UK travel expenses"

The relief for MPs late night taxi expenses does not include any restrictions as to the number of journeys and no requirements as to irregularity or working after 9 pm.

The current rules for income tax relief therefore appear to be considerably more generous for MPs than for the individuals they represent .

It seems odd that it is considered appropriate to abolish the less generous relief for the rest of the population but maintain the more generous relief for MPs.

Have I missed anything?


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