HC Deb 30 March 1979 vol 965 cc375-6W
Mr. Weitzman

asked the Chancellor of the Exchequer what is the total sum of tax relief given to companies and businesses in respect of private cars.

Mr. Robert Sheldon

The costs set against trading revenue in arriving at business profits for tax purposes include the running and other current costs of cars used wholly or partially for the purpose of the business, apportioned as necessary between business and other use. In addition, relief is due for capital expenditure on cars by business users, normally by way of annual writing-down allowance of 25 per cent. of the balance of unrelieved expenditure and subject to a maximum allowance in any year of £1,250 for any car.

I regret that insufficient information is available centrally to make an estimate of the amount of these costs and reliefs.

Mr. Weitzman

asked the Chancellor of the Exchequer what proportion of business cars are subject to leasing agreements under which the lease charge is fully deductible for tax purposes.

Mr. Robert Sheldon

I regret that this information is not available centrally.