Car Allowances

Treasury written question – answered on 15th July 2010.

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Photo of Fiona Bruce Fiona Bruce Conservative, Congleton

To ask the Chancellor of the Exchequer if he will bring forward proposals to increase from 40p per mile for the first 10,000 miles the rate at which employees may use their own vehicles tax free.

Photo of David Gauke David Gauke The Exchequer Secretary

The approved mileage allowance payments (AMAPs) system was introduced in April 2002 and the rate has remained unchanged since that date.

The Government keep the rates under regular review. The Government consider that the mileage rates are sufficiently high to cover the business motoring expenses of most drivers.

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