§ Mr. Ralph Howellasked the Minister of Transport in what circumstances travel concessions to employees are exempt from or allowable against income tax; and what is the estimated yearly value of this concession.
§ Mr. Peter ReesI have been asked to reply.
Cheap or free travel provided for employees is not taxable where, as for employees of the airlines and the Merchant Navy, it cannot be converted into cash. Where it is provided for a higher-paid employee, earning over £8,500 a year, it is taxable by reference to the cost of providing it, which is ordinarily very little in the case of employees of transport concerns. No information is available as to the amounts of such benefits.