Political Parties: Finance

Treasury written question – answered on 26th February 2009.

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Photo of Francis Maude Francis Maude Shadow Minister (Cabinet Office)

To ask the Chancellor of the Exchequer pursuant to the answer of 9 December 2008, Official Report, columns 46-47W, on political parties: finance, and with reference to the MPs, Ministers and Tax guidance note, whether Labour hon. Members' contributions to fund the services of the Parliamentary Labour Party based in Parliament are classified by HM Revenue and Customs as (a) a personal donation to a political party and (b) a cost incurred by an office holder that is wholly, exclusively and necessarily in performance of their Parliamentary duties.

Photo of Stephen Timms Stephen Timms Financial Secretary (HM Treasury) (also in the Department for Business, Innovation and Skills)

As noted in the booklet "MPs, Ministers and Tax", payments by Members to political organisations for party political purposes and any expenses incurred as a member of a political party are not allowable for tax purposes. HMRC would therefore normally classify contributions to fund the services of the parliamentary Labour party as (a) a personal donation to a political party, regardless of whether those services are based inside or outside Parliament.

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