TRAVELLING EXPENSES: TAX TREATMENT

HL Deb 17 November 1981 vol 425 cc497-8WA

Lord Houghton of Sowerby

asked Her Majesty's Government:

Who authorised the income tax appeal in the Chancery court in the case of Donnelly (Inspector of Taxes) v. Williamson which drew criticism from Mr. Justice Walton in his Judgment of 30th October 1981 (Times Law Report, 4th November) and what charge on public expenditure is estimated to result from these proceedings.

The Minister of State, Treasury (Lord Cockfield)

This was an appeal to the High Court authorised by the Board of Inland Revenue against a decision by the General Commissioners in a case concerning the tax treatment of travelling expenses. Although only a small amount of tax was involved in the assessments before the Court, the point at issue was considered to have wide implications by both the Inland Revenue and the National Union of Teachers, who had selected this appeal as a test case. The Inland Revenue is now studying the decision, and it is not yet possible to estimate the charge on public expenditure from these proceedings.