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Nurses (Car Allowance)

Volume 961: debated on Tuesday 30 January 1979

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asked the Secretary of State for Social Services if he will review the proposed levying of income tax upon car allowances to district nurses serving in densely populated urban areas.

Arrangements for taxation have recently been reviewed by my Department and the Inland Revenue. The position is that public transport and standard rate mileage allowances are free of tax unless paid for home-to-work journeys. Staff who are paid regular user car allowances will pay tax on a proportion of their allowances if they drive 3,000 miles or less a year on official business but not otherwise.