§ Mr. HunterTo ask the Chancellor of the Exchequer what is his policy with regard to changing the benefit in kind rules to make interest-free loans to purchase rail season tickets exempt from taxation.
§ Mr. DorrellMost interest-free loans provided by employers to employees to purchase rail season tickets are already exempt from tax. An employee does not pay tax on employer-provided loans where the total benefit of all loans in a year is not more than £300. This exemption saves work for employers, employees and for the Inland Revenue.
§ Mr. HunterTo ask the Chancellor of the Exchequer what is his policy with regard to making the cost of rail season tickets tax allowable.
§ Mr. DorrellI cannot anticipate my right hon. and learned Friend's Budget statement. However, under the current law, the cost of rail season tickets for home to work travel is not tax deductible. That applies to both employees and to the self-employed.