§ I also propose a simplification of the rules relating to the calculation of relief when trade losses which are augmented or created by the deduction of capital allowances are set against the trader's general income. The change will be of particular benefit to shipping at this time, though it will also be of general application.
§ The new rule that I propose will provide, broadly, that in computing a trader's loss for a period, the capital allowances to be taken into account will be those based on the events of the period for which the loss is computed. That does not seem to be an unreasonable proposition. This gives relief earlier than under the present rule. I estimate that the cost will be about £6 million this year and £4 million next year, of which more than half will go to benefit the shipping industry.