HC Deb 06 April 1976 vol 909 c262

The Finance Bill will also contain measures to deal with an avoidance scheme by which wealthy individuals have been able, by contrived arrangements, to use the 100 per cent. first year allowance given for capital investment simply as a means of minimising tax on their personal incomes. My hon. Friend the Financial Secretary to the Treasury explained last December in a Written Answer that where the asset giving rise to the relief is leased or chartered by certain kinds of partnership, the relief would be allowable only against the rental income. I propose to apply the same restriction in other circumstances where wholly artificial arrangements have been entered into for tax avoidance purposes and the relevant expenditure is incurred after today.