§ Mr. Denzil Daviesasked the Chancellor of the Exchequer whether he will itemise all those benefits in kind which are either wholly or partly exempt from the normal rates of income tax.
§ Mr. Peter Rees, pursuant to his reply [Official Report, 21 May 1979; Vol. 967, c.40–41], gave the following answer:
The following benefits in kind are wholly exempt from income tax for all employees: the provision of living accommodation where certain conditions are satisfied; the provision of death or retirement benefits; the provision of meals in a canteen; meal vouchers up to the value of 15p a day; free coal received by miners or cash allowances paid to them in lieu; the use of a pooled car available to more than one employee when the private use is incidental; and cheap or interest-free loans, the interest on which would have qualified for tax relief.
Employees, who are not covered by the special rules for benefits in kind, applying to directors and higher-paid employees, are also wholly exempt on benefits—other than medical insurance—which cannot be converted into cash, do not represent the meeting of a pecuniary liability or are not provided by means of a voucher exchangeable for goods, services or money.
§ Mr. Denzil Daviesasked the Chancellor of the Exchequer how much extra revenue will accrue to the Government from further charging of benefits in kind to income tax.
§ Mr. Peter Rees, pursuant to his reply [Official Report, 21 May 1979; Vol. 967, c. 41], gave the following answer:
I assume that the right hon. Member has in mind the extra revenue which would arise if the benefits which I have listed in answer to his other question were charged to income tax in the hands of all employees. I am afraid that there is insufficient information available to provide an estimate of the total yield.