Travel to Work (Tax Allowance)

Oral Answers to Questions — National Finance – in the House of Commons at 12:00 am on 25th January 1972.

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Photo of Mr Peter Rost Mr Peter Rost , Derbyshire South East 12:00 am, 25th January 1972

asked the Chancellor of the Exchequer whether he will now consider introducing a cost of travel to work tax allowance against earnings.

Photo of Mr Patrick Jenkin Mr Patrick Jenkin , Wanstead and Woodford

No, Sir. I do not think it would be right to single out this particular form of personal expenditure for tax relief.

Photo of Mr Peter Rost Mr Peter Rost , Derbyshire South East

Is it not unjust that some people should get their travel to work free at the Exchequer's expense because they have, perhaps, a company car or chauffeur, and that many other professional and business people are able to claim tax allowance for the cost of travel to work, when the majority of people in this country have to pay for their travel to work out of their taxed earnings? Would my hon. Friend look at the system in Germany whereby tax allowances are given for travel to work and at the advantages this has for the economy as a whole?

Photo of Mr Patrick Jenkin Mr Patrick Jenkin , Wanstead and Woodford

With respect, I must correct my hon. Friend's misapprehensions about those he says travel to work free and do not pay tax on that sum. This is simply not so. If a man has a company car he is assessed for tax on the private value, and that will include the travel to work. If a professional man is able to charge part of the cost of his car, this cannot include the share which is attributable to travelling between his home and his office.