§ Mr. Arthur Lewisasked the Chancellor of the Exchequer whether all taxpayers are charged income tax on the notional benefits received in travel warrants and in payment of their fares or travel facilities to and from their homes and place of employment; and whether such 499W arrangements are applied to civil servants, road and rail employees and, air and sea transport service employees.
§ Mr. Robert SheldonWhere an employer bears the cost of his employee's travel between home and work, whether by means of a warrant, an allowance or the provision of a facility, there is in general liability to tax on the employee's part. The only exceptions are where in the case of an employee earning less than £7,500 a year, the employer provides a facility which neither meets the employee's pecuniary liability nor is convertible into cash, and where in the case of higher-paid employees a pooled car is provided whose use for home-to-work
(a) (b) Value of child tax allowance Cash value of child tax allowance to standard/basic rate taxpayer Year Child aged under 11 Child aged between 11 and 16 Child aged over 16 Child aged under 11 Child aged between 11 and 16 Child aged over 16 £ £ £ £ £ £ 1950–51 60 60 60 27 27 27 1955–56 100 100 100 43 43 43 1960–61 100 125 150 39 48 58 1965–66 115 140 165 47 58 68 1970–71 115 140 165 47 58 68 1971–72 155 180 205 60 70 79 1972–73 155 180 205 60 70 79 1973–74 200 235 265 60 71 80 1974–75 240 275 305 79 91 101 1975–76 240 275 305 84 96 107 1976–77 300 335 365 105 117 128 1977–78 eldest child subsequent children 196 231 261 67 79 89 170 205 235 58 70 80 1978–79 including effect of Budget proposals 100 135 165 34 46 56
(c) Level to which 1978–79 child tax allowance would have to be raised to restore real value in base year* Year Child aged under 11 Child aged between 11 and 16 Child aged over 16 £ £ £ 1970–71† 395 481 566 1974–75 420 482 534 * The prices index used is the general index of retail prices—all items for 1970–71, 1974–75 and 1978–79, assuming a seven per cent, increase in prices between 1977–78 and 1978–79. † The figures take account of the effects of earned income relief in 1970–71. The value of child tax allowances in 1977–78 and 1978–79 is lower than in earlier years as part of the transition from child tax allowances and taxable family allowances to tax-free child benefits. When these payments are included, the total value of child support in 1978–79 for basic rate taxpayers is greater than in earlier years.