§ Mr. Austin MitchellTo ask the Chancellor of the Exchequer (1) what is his estimate of the real and the taxable value of benefits subject to (i) special and (ii) general rules, together with the estimated revenue therefrom;
(2) whether he will bring up to date his reply dated 6 April 1987, Official Report, column 78, concerning taxable benefits together with an estimate of (i) the amount by which the scale charges for company cars fall short of the true value of the benefit and (ii) the yield from taxing the full value.
§ Mr. LilleyThe available information, based on projections from data relating to 1985–86, on the taxable value of benefits and the tax yield arising is as follows:
Benefit provided by the employer—1989–90 Taxable value Tax yield £ million £ million Cars and free fuel for private use 2,840 880 Private medical insurance 290 90 Other expense payments and benefits 470 150 Total 3,600 1,120 The Government's view is that the typical value to employees of being able to use their company cars privately exceeds the present scale charges. But the value to particular employees depends on a wide range of factors. It is not possible, therefore, to provide an estimate of the aggregate extent to which the private use of company cars is undertaxed, or of the additional revenue which would arise if the full value was used in computing income.