HC Deb 17 November 1976 vol 919 cc646-7W
Mr. David Mitchell

asked the Chancellor of the Exchequer whether, when a car is provided by an employer and used by the employee partly for business and partly for private use, the fixed amounts of benefit set out in the tables to the Finance Act 1976 (which benefits are taxable upon the employee) are intended to cover the value of the right to use the car, and running costs still have to be treated as a separate benefit and apportioned as heretofor between business and private use, or whether the fixed charge is intended to cover all elements of benefit, so obviating the necessity for inspectors of taxes to negotiate apportionment of benefit separately for each taxpayer affected.

Mr. Robert Sheldon

Where the benefit from the use of a car is taxable by reference to the fixed charges set out in Schedule 7 to the Finance Act 1976, the charge will cover all the benefits derived from that use, except the provision of a driver, so that it will only be in relation to the provision of a driver that an apportionment will be required.