§ Mr. Elystan Morgan
asked the Chancellor of the Exchequer by how much he expects the total amount of investment allowances payable to industry in Wales in 1970 to fall short of the annual average paid in respect of investment grants in 1968 and 1969.
§ Mr. Higgins
The new capital allowances announced on 27th October, 1970 apply where expenditure is incurred on or after that date and industry will therefore benefit from the new allowances through reduced payments of corporation tax towards the end of the financial year 1971–72. Meanwhile payments of investment grant on eligible capital expenditure incurred or contracted for before 27th October, 1970 will continue to be paid in 1971–72 and thereafter.
Because a trader's tax liability is assessed on the profits of his whole trade and not by reference to the location of particular factories or establishments, it is not possible to apportion corporation tax revenue or the value of capital allowances by regions.