HC Deb 26 February 1975 vol 887 c187W
Mr. Farr

asked the Chancellor of the Exchequer if, in view of the fact that the new taxable £208 per annum mobility allowance for disabled persons on the standard rate of tax is only worth another £6.36p per annum when compared with the old tax free car allowance of £100 per annum, he will make the new mobility allowance tax free.

Mr. Robert Sheldon

No. Making the mobility allowance subject to tax means that it benefits most those with the smallest incomes. Where a person is liable to tax at the basic rate the new allowance, which is available to a much wider range of disabled persons than was the car allowance it has replaced, is worth £39.36 a year more than the old car allowance.