HC Deb 02 July 1979 vol 969 cc443-4W
Mr. Alfred Morris

asked the Chancellor of the Exchequer if he will detail in the Official Report those amounts which, following his Budget, the Exchequer will receive back from mobility allowance recipients leasing vehicles from Motability (a) in car tax, (b) in value added tax on the purchase of a car by the lessor, (c) in value added tax on the leasing rental, (d) in vehicle excise duty, (e) in excise duty and value added tax on petrol, assuming a usage of 150 gallons per annum and (f) income tax on mobility allowance.

Mr. Peter Rees

The tax borne by Motability and the individual user as the case may be, on the purchase and annual use of each British Leyland Mini car, assuming that the individual user pays the basic rate of income tax of 30 per cent. on his or her mobility allowance, would be about:

  1. (a) £173
  2. (b) £266
  3. (c) £82
  4. (d) Motability cars are exempt from vehicle excise duty
  5. (e) £77
  6. (f) £156.

The scheme provides for a new car to be purchased every four years.