§ Sir Michael Shawasked the Chancellor of the Exchequer whether it is intended that the current tax allowances and reliefs linked to mobility allowance should be extended to war pensioners' mobility supplement.
§ Mr. LawsonI propose in next year's Finance Bill to provide for first year capital allowances to be available in respect of capital expenditure on cars leased to recipients of war pensioners' mobility supplement, and for such recipients to be exempt from vehicle excise duty. Since the scheme under which war pensioners' mobility supplement is payable operates from 21 November 1983, I intend that the provisions should apply to expenditure and vehicle excise duty incurred on and after that date. In addition, an order will be made shortly amending the Value Added Tax (Cars) Order 1980 to allow the present VAT relief on cars supplied to disabled persons in receipt of mobility allowance to apply also in the case of war pensioners who qualify for war pensioners' mobility supplement. This extended relief will be applied extra-statutorily from 21 November until the order comes into effect.