HC Deb 20 March 1950 vol 472 cc92-3W
Mr. Vane

asked the Chancellor of the Exchequer whether he will set out the current rates of the Road Fund licence, the wear and tear and initial allowances for Income Tax in respect of a tractor on rubber tyres purchased on 1st January, 1950, costing £400 and weighing two tons used in farming only; in forestry only but including journeys on the public road drawing timber and other forest products; on agricultural repair and maintenance work including journeys on the public road; and in the amusements trade hauling cocoanut shies or similar equipment on the public road between fairgrounds, respectively.

Sir S. Cripps

The current rates for vehicle excise licences for a tractor weighing two tons are as fo11ow:

  1. (a) Farming only: 5s. save in very exceptional circumstances where the rate would be f12;
  2. (b) Forestry only, including hauling of timber on the road: £25;
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  3. (c) Agricultural repair and maintenance work: 5s.; £12 or £25 according to circumstances;
  4. (d) Amusement trade, showmen's tractors: £25.

The relevant provisions are set out in Section 4 and paragraph one of the Sixth Schedule of the Vehicles (Excise) Act, 1949, the rates being shown in the Third Schedule.

Current rates of allowance for Income Tax purposes are as follow:

Initial allowance (all cases)—40 per cent.

Wear and tear allowance (farming)—22½ per cent.

Wear and tear allowance (other cases)—20 per cent.

The wear and tear rates set out above are basic percentage rates applicable on the normal (reducing balance) method. Where this method is adopted the first annual allowance is computed by applying five-fourths of the basic percentage rate to the capital expenditure on the machinery or plant, and subsequent annual allowances by applying five-fourths of the basic percentage rate to written-down value.