§ Mr. Richard Pageasked the Chancellor of the Exchequer whether, in the light of his decision to postpone 405W the introduction of any change to the method of collecting tax on car and car fuel benefits, he will consider similarly postponing from 1982–83 the introduction of the scale charge on car fuel benefits imposed by section 69 of the Finance Act 1981.
§ Mr. RidleyYes. For a number of reasons I consider it advisable to postpone the introduction of the scale charge for car fuel for one year and amending legislation will be included in the next Finance Bill. It is, however, intended that directors and higher-paid employees enjoying the benefit of car fuel for use for private motoring in company cars will be liable to tax for 1982–83 if they receive such fuel by means of company credit cards, vouchers, the payment of expenses or by their employer meeting a pecuniary liability of theirs.
The Inland Revenue is currently reviewing the procedures by which tax on car and car fuel benefits is collected and that review will take account of any special problems arising from the form of the car fuel charge.