33. Mr. Vane
asked the Chancellor of the Exchequer what would be the approximate benefit to the Exchequer of withdrawing the initial allowance for Income Tax on the purchase of motor cars used for business purposes.
§ Mr. H. Brooke
The estimated yield in the first full year if initial allowances for passenger cars used for business purposes were withdrawn would be between £7 million and £10 million. The yield in future years would be gradually reduced as the withdrawal of initial allowance was offset by larger annual allowances.
Would my right hon. Friend consider this point sympathetically during the passage of the Finance Bill?
§ Mr. Brooke
This matter has been raised and has been considered by the Chancellor of the Exchequer. It is not always appreciated that the withdrawal of this initial allowance would hit very hard certain classes of professional people, such as doctors, who must have a car for their professional purposes.