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CZ 32: Treatment of certain petroleum storage facilities
or “How income is calculated when petroleum miners sell underground gas storage facilities”
You could also call this:

“Exception for housing provided to religious ministers from 2013 to 2015”

This law applies to you if you’re a minister of religion and your religious group provides you with a place to live between 1 July 2013 and 31 March 2015. The value of this housing is considered part of your income, but there’s a special way to calculate it.

To work out how much of your housing is counted as income, you use a formula. First, you take 10% of the money you get paid for your work as a minister. Then, you reduce this amount based on how much of the house you use for work. If you use part of the house mainly for your duties as a minister, that part isn’t counted as income.

If you share the house with other ministers, the value is split equally between you. If you only live there for part of the year, the calculation is adjusted to cover just that time.

The law defines a minister of religion as someone who holds an official position in a religious group, whose main job is to practice, study, teach, or advance religious beliefs, and whose housing is an important part of doing their job. This doesn’t include members of religious societies or orders covered by section CW 25.

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Next up: CZ 34: Income arising from tax accounting provision for aircraft engine overhauls

or “Money from aircraft engine overhaul tax provisions counts as income”
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Part C Income
Terminating provisions

CZ 33Transitional exception for accommodation provided to ministers of religion

  1. This section applies for the period that starts on 1 July 2013 and ends on 31 March 2015 when accommodation is provided to a person who is a minister of religion and the property in which the accommodation is provided is supplied by the religious society or organisation of which they are a minister.

  2. Despite section CE 1 (Amounts derived in connection with employment), the value of the accommodation is income of the person but is limited to the extent described in subsection (3).

  3. The amount of income for an income year is calculated using the formula—

    remuneration × (1 − adjustment).

    Where:

    • In the formula,—

    • remuneration is the amount that equals 10% of the remuneration that the person receives for the income year for the performance of their duties as a minister from the religious society or organisation of which they are a minister:
      1. adjustment is the adjustment referred to in subsection (6), and is the part of the amount that is the value of the accommodation for the income year apportioned to work-related use, expressed as a decimal fraction of the total value of the accommodation.

        1. For the purposes of subsection (4)(a), the calculation of the amount of the item remuneration excludes the value of the accommodation described in subsection (1) that is provided to the person.

        2. An adjustment referred to in subsection (4)(b) is as follows:

        3. if the person to whom the accommodation is provided uses part of the accommodation wholly or mainly for work purposes related to their duties as a minister, the amount is apportioned between that business use and private use:
          1. if more than 1 person referred to in subsection (1) shares in the accommodation provided, the amount is apportioned equally between them.

            1. For the purposes of this section, if accommodation is provided for part of an income year, the references to income year are read as references to the relevant parts of the income year.

            2. For the purposes of this section, minister of religion—

            3. means a person—
              1. who is ordained, commissioned, appointed, or otherwise holds an office or position, regardless of their title or designation, as a minister of a religious denomination or community that meets the charitable purpose of the advancement of religion; and
                1. whose duties are related mainly to the practice, study, teaching, or advancement of religious beliefs; and
                  1. whose accommodation is used as an integral part of performing their duties; and
                  2. does not include a member of a religious society or order referred to in section CW 25 (Value of board for religious society members).

                    Notes
                    • Section CZ 33: inserted (with effect on 1 July 2013), on , by section 92 of the Taxation (Annual Rates for 2015–16, Research and Development, and Remedial Matters) Act 2016 (2016 No 1).