HC Deb 30 July 1980 vol 989 cc712-3W
Mr. Grimond

asked the Chancellor of the Exchequer why the use of publicly provided cars between home and office by Ministers and civil servants is free of tax while warrants for travel between home and work are taxable.

Sir Geoffrey Howe

[pursuant to his reply, 28 July 1980, c. 476]: The provision of cars for higher-paid employees, including Ministers and Civil Servants, ordinarily attracts liability to tax except where the car is used by more than one employee, its private use is merely incidental to its official use and it is not kept overnight at or near any of the employees' homes. If these conditions are fulfilled, the car is treated as a pooled car and its tax-free provision is based on its not being regarded as freely available for private use. A travel warrant provided for an employee for travel between his home and work is taxable because the cost of the journey is not incurred in the performance of his duties.