§ Mr. TrotterTo ask the Chancellor of the Exchequer when the current level of higher pay for employers and directors for the purpose of taxing benefit were fixed; and what would he the level if it had been indexed.
§ Mr. Norman Lamont[holding answer 21 February 19891Employees whose earnings, including the value of30W benefits, are at a rate of £8,500 or more per year are liable to tax on benefits in kind. All directors are liable regardless of the level of earnings. The earnings threshold was set at £8,500 in 1979–80 and, if it had been indexed in line with inflation according to the statutory formula for increasing personal allowances and thresholds, the threshold in 1988–89 would be £17,000.