§ Mr. David ShawTo ask the Chancellor of the Exchequer what would be the amount of additional revenue raised if the capital and running costs of company-owned cars were included in the calculation of taxable income for income tax and national insurance purposes on the basis of actual costs incurred.
§ Mr. MaudeEmployees who have cars made available to them for private use are charged to tax on the basis of scale charges for broad bands of types of car and depending on the current business mileage. The actual costs incurred by employers in providing cars are not known. However, in considering the appropriate lever for the scale charges, a full range of appropriate capital and running costs is taken into account. The value of employer-provided cars is not subject to the national insurance charge.