§ Sir Ian GilmourTo ask the Chancellor of the Exchequer which EC member states allow employees to put travel to work costs against their income tax, together with approximate sterling equivalents of the amounts involved; and which member states allow employees to make fixed-amount or fixed-percentage deductions.
§ Mr. Norman LamontThe latest available information is given in the table.
All distances have been converted to miles and all amounts have been converted to sterling using the latest available purchasing power parities. 37W
Country Tax treatment of travel to work costs Belgium A lump sum deduction is allowed for employment expenses. This deduction is deemed to include home-to-work travel expenses and is calculated as a percentage of income on a degressive scale. The maximum permitted deduction is £1,533, but if taxpayers can prove higher actual expenses they can claim the higher amount. Denmark A deduction is allowed for home-to-work travel which exceeds 12.5 miles per working day. For distances between 12.5 and 34 miles the deduction is 1lp per mile per working day, and 3p per mile for distances over 34 miles. If the taxpayer uses his own car and the daily travelling exceeds 34 miles the deduction may be made at the rate of 10.5p per mile for a distance in excess of 12.5 miles per working day, if public transport cannot be used. France Actual costs are deductible, but if the distance from home-to-work is more than 18.75 miles the taxpayer must provide evidence of expenditure and must have sound reasons (other than personal preference) for living so far from the place of work. Germany Costs in respect of one journey per day by public transport are fully deductible. The costs of travel by the taxpayer's own vehicle are deductible as follows: car —25p per mile motorcycle — 1lp per mile bicycle —6p per mile Greece No specific provisions have been found. Ireland No deduction is allowed. Italy There is no specific deduction or tax credit for home-to-work travel expenses, but all em-ployees receive a tax credit in respect of expenses incurred in the course of employment. That tax credit is £269 for all employees plus £84 if employment income does not exceed £5,138. Luxembourg An annual deduction is allowed amounting to £93.60 per mile up to 18.75 miles. As no additional deduction is permitted for distances over 18.75 miles, the maximum deduction is £1,755. Netherlands A fixed deduction is allowed, based on the method of transport and the home-to-work distance. The annual deductions range from £204 where the distance is between six and nine miles, to £887 where the distance is over 44 miles. The deductions for distances over 18.75 miles apply only to travel by public transport. Travel by private car is limited to a maximum deduction of £419. There are provisions to encourage car-sharing: drivers may receive up to 19p per mile as a tax-free reimbursement from their passengers. Portugal No special provisions have been found. Spain No special provisions have been found. United Kingdom No deduction is allowed.