HC Deb 24 May 1976 vol 912 cc87-8W
Mr. McCrindle

asked the Chancellor of the Exchequer upon what basis of calculation it is decided that concessionary goods from an employer are not taxable under the new regulations.

Mr. Robert Sheldon

Concessionary goods received from an employer are already taxable on the difference between their resale value at the time of receipt and the price actually paid for them. There is therefore no need for special provision to be made for their taxation in the current Finance Bill.

Mr. McCrindle

asked the Chancellor of the Exchequer upon what basis of calculation it is decided that concessionary services from an employer are taxable under the new regulations.

Mr. Robert Sheldon

Concessionary services received from an employer have no resale value and are therefore not taxable under the ordinary rules of Schedule E. Under the special rules, employees earning over £5,000 are to be taxable on the difference between the price payable at arm's length for those services by a member of the public and the reduced price actually paid; taking account of the terms on which the concessionary services are provided.