HC Deb 26 March 1993 vol 221 c746W
Mr. Allen

To ask the Chancellor of the Exchequer what plans he has to review the Inland Revenue guidelines on tax-free mileage rates paid by employers; and what is the formula now used to arrive at those rates.

Mr. Dorrell

The tax-free rates for 1993–94 were announced on 23 March 1993 in an Inland Revenue press release and are set out below, with the 1992–93 rates in brackets. The formula used to arrive at the tax-free mileage rates ensures that, for drivers who do typical private mileages, the rates reflect tax-allowable business costs as closely as possible whatever the level of business mileage.

Up to 4,000 miles Over 4,000 miles
Cars up to 1,000 cc 26p (25p) 15p (14p)
Cars 1,001 to 1,500 cc 32p (30p) 18p (17p)
Cars 1,501 to 2,000 cc 40p (38p) 22p (21p)
Cars over 2,000 cc 54p (51p) 30p (27p)

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