HC Deb 01 May 1987 vol 115 c296W
Mr. Austin Mitchell

asked the Chancellor of the Exchequer, pursuant to his reply dated 6 April, Official Report, column 78, concerning taxable benefits subject to special and general rules, whether he will provide an estimate for each of the three classes of the proportion of the actual value which is assessed to tax in each of the three cases together with a list of the more important items.

Mr. Norman Lamont

[pursuant to his reply, 27 April 1987, c. 54]: The taxable value of cars and free fuel for private use provided by an employer is calculated by reference to a set of scale charges. Information on which to calculate aggregate values on a different basis is not available within the Inland Revenue, but it is clear that, in general, while the fuel scale charges broadly reflect the value of the fuel benefit, the scale charges for company cars still fall well short of the true value of the benefit.

The taxable value of private medical insurance premiums and most other expense payments and benefits — the main exceptions being beneficial loans and accommodation provided by an employer—is the cost to the employer of providing the benefit. The taxable value of beneficial loans is calculated by reference to the difference between the official rate of interest (which broadly reflects commercial rates) and the actual rate of interest paid; accommodation provided by an employer is taxed by reference to the annual value of the accommodation, less any rent paid. The Inland Revenue does not collect information on any other basis of valuation.

The most important types of benefits are cars and fuel for private use and private medical insurance.

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