There are tax and NIC exemptions in relation to MPs and others for termination payments, accommodation expenses, (formerly, overnight expenses allowances), European travel expenses and in relation to government ministers and MPs for certain types of transport and subsistence. They apply also to members of the Scottish Parliament, the National Assembly for Wales and the Northern Ireland Assembly, and those holding office in those bodies equivalent to that of government ministers1.
Allowances other than those described below are subject to the same general principles as allowances paid to other employees.
Accommodation expenses (formerly overnight expenses allowances)
No liability to income tax arises in respect of a payment made for 'accommodation expenses' to a member of the House of Commons under Parliamentary Standards Act 2009, s 5(1). This applies equally to a payment related to, or in consequence of, a payment for accommodation expenses2. 'Accommodation expenses' are expenses necessarily incurred on overnight accommodation that is required for the performance of the member's parliamentary duties in or about the Palace of Westminster
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