§ Mr. Arthur Lewisasked the Chancellor of the Exchequer why former Prime Ministers and Ministers who have cars and drivers supplied and all expenses met by the Treasury' have no tax deducted for notional benefits.
§ Mr. Peter ReesThe provision of cars to former Prime Ministers does not give rise to tax liability because such cars are not provided by reason of an office or employment. The provision of cars for higher-paid employees, including office holders such as Ministers, 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 taxfree provision is based on its not being regarded as freely available for private use.