To ask the Chancellor of the Exchequer by what authority local councillors' attendance allowances are classified as earned income for tax purposes; and if he will make a statement.

Local authority councillors are office holders and therefore are assessable to income tax under the ordinary schedule E charging provisions on any attandance allowances they receive for the performance of approved duties. The charge to tax is imposed by section 19 of the Income and Corporation Taxes Act 1988.