HC Deb 30 March 1984 vol 57 cc307-8W
Mr. Walden

asked the Chancellor of the Exchequer what entitlement to writing down allowances there will be under his Budget proposals for expenditure incurred in 1985–86 on machinery or plant.

Mr. Moore

As my right hon. Friend announced in his Budget statement, he will be proposing that writing down allowances for machinery or plant should start to run from the time when expenditure is incurred instead of, as now, when the asset concerned is brought into use. This change will take effect for expenditure incurred on or after 1 April 1985. However, most expenditure incurred on machinery of plant in 1985–86 will qualify for first year allowances at the rate of 50 per cent. and writing down allowances are not also available for any chargeable period for which a first year allowance is, or could be, claimed. Accordingly, in those cases writing down allowances will not be due in that year and the change in the timing of the allowances will not have any practical effect until the following year. The change may, however, affect the timing of writing down allowances in 1985–86 for expenditure on machinery or plant which does not qualify for first year allowances.

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