Company Cars

Lord Razzall Excerpts

Tuesday 10th January 2012 Lords Chamber

[Earl Attlee]

My noble friend makes an extremely important point. Many company car users have to use a company car; there is no alternative. I am also confident that the system of company car taxation is progressive and fair.

[Lord Razzall]

My Lords, does my noble friend agree that, apart from what he said in his last answer about ensuring that large company cars pay the maximum tax feasible, this issue would be better not dealt with by the Government?

[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.