Company Cars

Baroness Gardner of Parkes Excerpts

Tuesday 10th January 2012 Lords Chamber

[Earl Attlee]

My Lords, I am happy to agree that the Government should not interfere any more than we already do, by the system of company car tax that I have outlined, but I am also confident that bigger and heavier cars pay considerably more in company car tax, not least because an employee who is entitled to a large car will also be paying much higher rates of marginal tax, and company car tax is paid at the marginal rate of tax.

[Baroness Gardner of Parkes]

My Lords, one of the questioners asked my noble friend about insurance and there being many more accidents. What is the insurance position and is it taken into account in the terms of the taxation? Do people not care so much about accidents because it is not their no-claims bonus that they are losing?

[Earl Attlee]

My Lords, if a company car driver has an accident, I suspect that it would affect their no-claims bonus because they would have to declare their accident to the insurance company, but I am not absolutely certain on that point.