§ Mr. David Mitchellasked the Chancellor of the Exchequer what changes in tax treatment of season tickets offered to employees have been made by the Inland Revenue in the past two years; what distinction is made between tickets offered in addition to wages or in lieu of wages and tickets in lieu of an increase in wages; and if he will make a statement.
§ Mr. Robert SheldonThe Inland Revenue has made no change in the tax treatment of season tickets during the past two years. As I made clear in the statement which I gave in reply to my hon. Friend the Member for Coventry North-East (Mr. Park) on 27 November last—[Vol. 959, c.69]—the provision of season tickets in lieu of wages or of an increase in wages is taxable in the hands of any employee whatever the level of his earnings; and, in the case of a director or higher-paid employee within the scope of the benefits legislation, it is taxable as a benefit regardless of the means by which it is provided. In other cases, the tax 550W treatment must depend on the precise nature of the arrangements made for their provision.