HC Deb 19 November 1979 vol 974 cc76-7W
Mr. Joel Barnett

asked the Chancellor of the Exchequer if he will list current Automobile Association scales of car-running costs, and compare them with scales of benefit as at present assessed.

Mr. Peter Rees

[pursuant to his reply, 13 November 1979, c. 542]: The AA figures are not published in a form suitable for comparison with the scales at present used. The attached table is reproduced from the Inland Revenue consultative paper "The taxation of Cars and Petrol as Benefits in Kind"—August 1979. The figures of benefit were calculated by reference to the AA's estimated cost of running a car, taking—on the basis of the car's dual function of business use and availability for private use—one-half of the standing charges—car tax, depreciation, interest on capital and insurance—together with the running costs for 8,000 miles—repairs, servicing and tyres, but excluding petrol and oil.

Mr. Joel Barnett

asked the Chancellor of the Exchequer what is his estimate of additional tax receipts in 1979–80 if car benefits were assessed on Automobile Association scales, and regardless of income levels.

Mr. Peter Rees

[pursuant to his reply, 13 November 1979, c. 543]: The AA does not produce scales of car benefits as such. If car benefits were taxed by reference to the figures quoted in the Inland Revenue's recent consultative paper on the taxation of cars and petrol as benefits in kind, and if the £8,500 income limit were disregarded, the additional tax would be about £330 million.

Mr. Joel Barnett

asked the Chancellor of the Exchequer what is his estimate of additional tax receipts in 1979–80 if petrol and oil used had been included in car benefits.

Mr. Peter Rees

[pursuant to his reply, 13 November 1979, c. 543]: On the assumption that about 250,000 taxpayers subject to the present rules for taxing car benefits are currently provided by their employers with petrol for private use at a cost of about £250 a year, it is estimated that the additional tax receipts for 1979–80 would be about £20 million to £25 million.