HC Deb 11 February 1993 vol 218 cc739-40W
Mr. Barry Field

To ask the Chancellor of the Exchequer, pursuant to the answer of 29 January,Official Report, column 869, from the Secretary of State for Transport, how many persons in each of those categories are subject to taxation of the concessionary benefits; and what was the total income received from the taxation of this benefit for each of the last five years.

Mr. Dorrell

Pensioners of British Rail and British transport police are not liable to tax on their travel concessions.

Employees are generally liable to tax on the expense incurred in providing benefits for them, their families and dependants. However, the case known as Pepper v. Hart established that the relevant expense for in-house benefit is the marginal, or direct additional cost. This is nil or negligible for British Rail employees, the British Transport police, and former employees of the British Transport Docks Board, Sealink and Wightlink. The Inland Revenue is repaying any excess tax collected in the current and past years, estimated to be around £4 million a year, on request from employees and as tax offices identify the need to do so.

Former employees of British Transport hotels who are still in employment and whose employers pay for their

1 Tax units for years prior to 1990–91.

2 In 1978–79 prices.

Mr. Frank Field

To ask the Chancellor of the Exchequer what was the percentage shares of income tax paid for each year since 1977–78, by(a) the top 1 per cent. of taxpayers, (b) the next 2 to 5 per cent., (c) the next 6 to 10 per cent. and (d) the next 10 to 20 per cent. and subsequent deciles.

Mr. Dorrell

Estimates are given in the table. For years up to and including 1989–90, married couples are counted as one taxpayer and their incomes are combined. Following the introduction of independent taxation, for 1990–91 onwards, husbands and wives are counted separately. The figures in the table have been rounded to the nearest one per cent. and may not sum to 100 for each year.

travel concessions are liable to tax on the cost to their employer. The total tax received in respect of these employees is not readily available.