HC Deb 16 February 1971 vol 811 cc1598-9
24. Mr. Kenneth Baker

asked the Chancellor of the Exchequer whether he will take steps to modify the scheme for investment incentives to allow the balance after the initial allowance of 60 per cent. to be written off on a straight line rather than reducing balance basis.

Mr. Maurice Macmillan

No: this would be contrary to my right hon. Friend's intention of simplifying capital allowances.

Mr. Baker

Could I press the Minister to look at this again before the publication of the Finance Bill since industry will find it much easier to write off the balance of 40 per cent. in equal annual instalments rather than in indeterminable amounts over an indeterminable number of years?

Mr. Macmillan

The straight line method appears to be the simpler but it is more complicated in the end. Certainly only a small proportion of the traders actually elect for that system as opposed to the other. I will certainly look at what my hon. Friend says.