§ Sir David Price
asked the Chancellor of the Exchequer, on the basis of the assumptions made in the Autumn Statement 1984, what would be the estimated cost of raising the £8,500 a year threshold for the assessment of fringe benefits by directors and higher paid employees to offset the effects of inflation since this threshold was introduced; and what would be the new figure for 1985–86.
§ Mr. Moore
[pursuant to his reply, 22 January 1985, c. 364–65]: The earnings threshold for the assessment of benefits in kind does not apply to most directors. The threshold for employees was set at £8,500 with effect from 6 April 1979. If it were to be increased in line with forecast movements in the retail prices index since then, its level in 1985–86 would be about £13,500. The direct revenue cost of such a change is estimated at about £110 million in a full year at 1985–86 income levels.