Accomodation for Presbyters – Government Decision

The Government will include changes to the tax treatment of employee allowances, reimbursements and employer-provided accommodation in the Taxation (Annual Rates, Employee Allowances, and Remedial Matters) Bill, which will be introduced later this month.

The main proposal that will affect Churches is:

  • When an accommodation benefit is taxable, it will generally be valued at its market rental value. However, for reasons of fairness, a specific valuation rule is proposed for ministers of religion, to reflect longstanding past practice. In that case the taxable value will be capped at 10% of the minister’s remuneration, subject to the accommodation being commensurate with the minister’s position and ministry location.

One thought on “Accomodation for Presbyters – Government Decision

  1. Changes to the tax treatment of Presbyters Housing have now been set out in a Bill. The Bill is called the Taxation (Annual Rates, Employee Allowances, and Remedial Matters Bill. It has been to the Select Committee and reported back to the House. It is waiting its second and third reading.

    Clause CB 25B of the Bill attempts to codify the long-standing administrative practice of capping the taxable value of church-owned accommodation provided for ministers of religion at 10 percent of the ministers remuneration. The Bill includes a formula with a number of definitions.

    Once it has before law and if changes are required in the way to tax ministers housing, we will let you know.

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