HC Deb 13 March 1980 vol 980 c664W
Mr. Speller

asked the Chancellor of the Exchequer whether there is a minimum annual mileage below which a local government officer using his own car in the course of his work and in receipt of an essential car user allowance may not claim exemption from tax; what recent changes have been made in this level; and what are the considerations which determine the level at any particular time.

Mr. Peter Rees

Mileage allowances payable to employees who use their own cars for the purposes of their employment are taxable in so far as they exceed the expenses for which they are paid. The Inland Revenue has agreed with the local authorities that where a local government officer receives an essential car user allowance he should not be taxed on it for 1979–80 onwards if he travels 4,000 miles or more a year on business; but this agreement does not preclude an officer who has travelled less than 4,000 miles from claiming exemption. Previously the agreed figure was 3,000 miles.