§ Mr. CorbynTo ask the Chancellor of the Exchequer what estimate he has made of(a) the cost of the tax relief on company cars and (b) the number of such cars (i) in each year since 1980 and (ii) in the current tax year. [19063]
§ Mr. Jack[holding answer 5 March 1996]: The cost of tax relief on business cars is to a large extent offset by the tax yield on the private use of such cars. Detailed estimates of the overall number of business cars are not available but the estimated cost in 1995–96 of capital allowances claimed on all business cars, including those purchased by unincorporated businesses, is £2.2 billion. 578W This compares with an offsetting yield from the taxation of the private use for employees of £1.4 billion. Estimates of the cost of relief are not produced on a regular basis.
The table gives estimates of the number of employees who are provided by their employers with cars which are available for private use. There are also currently about 1.8 million self-employed people who claim relief for business cars against schedule D income tax liability. Figures for other business cars—taxis, pool cars, drive hire cars, etc.—are not available.
Number with taxable car benefit (thousands) 1980–811 560 1981–821 650 1982–831 790 1983–841 850 1985–86 1,070 1987–88 1,550 1988–89 1,750 1989–90 1,850 1990–91 1,950 1991–92 1,900 1992–93 1,810 1993–94 1,740 1994–95 1,700 1995–96 1,700 1 Figures exclude married women.