§ Mrs. Faithasked the Chancellor of the Exchequer what repayments of tax are being made to recipients of mobility allowance as a result of the High Court judgment in the case of Willows v. Lewis.
§ Sir Geoffrey HoweThe High Court decision in this case is that mobility allowance was not taxable under schedule E in the years 1975–76 to 1978–79. Repayments of tax are, strictly speaking, not due to the large majority of those involved, because of the provisions in the Taxes Acts which prevent the reopening of liabilities for past years where these have been settled on a view of the law accepted at the time. However, in the particular circumstances of this case, I have decided that repayments for the four years in question may be made in all instances by extra-statutory concession. The Inland Revenue will identify current recipients of the allowance who pay tax and make any repayments due to them automatically. In any case, where this does not prove possible, a claim for repayment will be accepted. This includes a claim for the year 1975–76, which in normal circumstances would not be admissible beyond the six-year point of 5 April 1982, provided that the claim is made on or before 31 December 1982.