§ Mr. Matthew Taylor
To ask the Chancellor of the Exchequer what progress has been made on the review of the taxation of company cars.
§ Mr. Timms
A major reform of company car tax, to be implemented from April 2002, was announced by the Chancellor in the 1999 Budget, following a review of the system in the light of criticism of its inherent perverse incentives for some company car users to drive extra, unnecessary business miles. The main details of how the system will work in practice were announced in a Budget 2000 press release (Rev6)—'Protecting the environment: Reform of company car taxation' as legislated for the Finance Act 2000.