Congestion charge refund will be taxed
Public sector staff, whose London congestion charge is reimbursed, will have to pay income tax on it, financial secretary Ruth Kelly has ruled in the Commons.
Replying to a question from Runnymede and Weybridge Tory Philip Hammond, she said it would be treated the same way as other payments made by employers to employees for travel costs to their normal place of work.
The congestion charge comes into effect on the 17 February. Earlier this month, the Inland Revenue said motorists will not be able to claim the daily £5 charge – paid to enter Central London – back as a tax-deductible expense.