Chartered Accountants lg? The Poplars Bridge ghee-?- Brigg 9 April 2016 North Lincolnshire DN20 SNQ Rt. Hon DW Cameron 10 Downing Street t: 01652 6551 i 1 Westminster f: 01652 651114 London e: action@rnsca.co.uk SW1A 2AA w: Also at: 50 54 Oswald Road - Sounthorpe Dear Sir DNH.) 7139 We can confirm that the income and the taxation paid thereon, as reported on your self . . . t. 01724 842713 assessment tax return for the last years IS as per the enclosed schedule. We also enclose a schedule of notes which may assist in interpreting the figures. Also of: 41 High Street Yours faithfully Barton North Lincolnshire DN18 5PD t: 01652 632251 Partners: liVI Pounder FCA RJ Abbott FCA JP Heeney FCA RA Smith FCA A Ingleton FCA AJ Clayton FCA Camm ACA Associate Partners: AJ Douglas ACA KA ACCA GL Makinson ACA Registered to carry out audit work in the UK by the institute of Chartered Accountants in England and Wales Taxable pay and earnings as MP and Prime Minister/Leader of Opposition Taxable expenses from Conservative Party Net rental income Interest Dividends Royalties Total taxable income Personal Allowance Income Tax Paid (7) Additional Information Capital gains/ (losses) Other sources (8) (9) 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 121,648 115,235 142,364 135,000 140,997 140,522 10,216 12,854 13,149 5,105 5,293 9,834 0 28,996 45,041 46,700 47,764 46,899 26 87 365 2,701 6,681 3,052 721 114 0 0 0 0 3,089 0 0 0 0 0 135,700 157,286 200,919 189,506 200,735 200,307 (6,475) 0 0 0 0 0 129,225 157,286 200,919 189,506 200,735 200,307 43,483 56,155 77,987 72,472 76,288 75,898 9,501 (2,507 NOTES TO SCHEDULE OF TAXABLE SOURCES OF INCOME AND GAINS Overthe relevant period the Prime Minister has received pay and earnings as an MP, as Leader of the Opposition, and as Prime Minister. These appear in his tax returns and are taxed at source through PAYE. Compared to his publicly available gross salary as Prime Minister and as an MP (?142,500 in total for this period), the figures shown here include deductions for his employee pension contributions and additional liabilities to cover the utilities for the flat in Downing Street. This latter item is, effectively, a charge on the private benefit of accommodation in Downing Street; we understand this is a longstanding practice. Variations in annual taxable pay can be explained by the Prime Ministerial Allowance (see below); and changes to employee contributions to his Ministerial pension. We understand that, like Prime Ministers before him, the Prime Minister is entitled to 3 Prime Ministerial expenses deduction (?20,000 when he came to office). This is a longstanding practice, begun in 1947, intended to cover business expenses incurred as a result of holding the office of Prime Minister. It is expressed as an allowance but is given as a tax-free deduction from the Prime Minister?s salary. This allowance is currently enabled under Section 368 of the income Tax (Earnings and Pensions) Act 2003, whereby the Treasury can authorise an element of tax free salary for the Prime Minister. The amount is set from time to time by the Treasury Permanent Secretary, in consultation with the Cabinet Secretary. In 2010-11 the Prime Minister received this expenses deduction. in 2011-12, 2012-13 and 2013-14, the Prime Minister also received the deduction but voluntarily cancelled it out by declaring the equivalent amount (?20,000) as taxable income. From 2014?15 he waived the deduction altogether. Expenses paid by the Conservative Party on behalf of the Prime Minister?s and Cameron?s political and official duties, including travel, clothes and other associated expenses. These were treated as a benefit in kind and tax was paid by the Prime Minister accordingly. The Prime Minister and his wife let out their London home. These amounts are the Prime Minister?s share (50 per cent) of the rent received after deduction of expenses. This is interest on savings with a UK high street bank. 30? ?vi In 2010, the Prime Minister sold on the open market his shareholdings. He presently holds no shares. These amounts are the dividends received before disposal. These amounts are royalties received for the book, Cameron on Cameron. Royalties received associated with this publication were donated to charities, including Epilepsy Research UK and MENCAP. From the tax year 2010-11, the Prime Minister like all additional rate taxpayers was not eligible to receive the Personal Allowance. In January 2010, the Prime Minister and Cameron sold their units in Blairmore. The Prime Minister?s share of the capital gain was ?9,501 therefore below the ?10,100 threshold for Capital Gains Tax. In July 2010 they sold on the open market all other shares held jointly. The capital gains made on some of those shares were covered by the losses on other shares, and overall there was a capital loss on those transactions of ?2,507 for the Prime Minister. The Prime Minister has no other sources of taxable income or gains, from either the UK or overseas.