HC Deb 23 January 1985 vol 71 c447W
Sir David Price

asked the Chancellor of the Exchequer, on the basis of the assumptions made in the Autumn Statement 1984, what would be the estimated cost of raising the £8,500 a year threshold for the assessment of fringe benefits by directors and higher paid employees to offset the effects of inflation since this threshold was introduced; and what would be the new figure for 1985–86.

Mr. Moore

[pursuant to his reply, 22 January 1985, c. 364–65]: The earnings threshold for the assessment of benefits in kind does not apply to most directors. The threshold for employees was set at £8,500 with effect from 6 April 1979. If it were to be increased in line with forecast movements in the retail prices index since then, its level in 1985–86 would be about £13,500. The direct revenue cost of such a change is estimated at about £110 million in a full year at 1985–86 income levels.