§ Mr. Austin Mitchell
To ask the Chancellor of the Exchequer (1) what is his estimate of the gain to the Revenue in a full year from adding the whole cost of remuneration and benefits in kind to the income of the recipient for tax purposes;
(2) what is his estimate of the gain to the Revenue in a full year from disallowing all remuneration and benefits in kind as an expense against tax.
§ Mr. Norman Lamont
The taxable value of cars and free fuel provided for private use by an employer is calculated 143W by reference to a set of scale charges. Beneficial loans are valued by reference to the difference between the official rate of interest (which broadly reflects commercial rates) and the actual rate of interest paid; accommodation provided by an employer is taxed by reference to the annual value of the accommodation, less any rent paid. Information on the cost to the employer of providing the four benefits listed is not available centrally to the Inland Revenue.
The taxable value of other remuneration in kind received by directors and higher paid employees is already determined by reference to the cost to the employer.
Estimates of the revenue effect of either taxing all remuneration in kind by reference to the cost to the employer or disallowing all of these costs in the computation of the employers' taxable profits are therefore not available.