§ Mr. McCrindle
asked the Chancellor of the Exchequer if he will state what tax incentives exist to support civil 208W research and development programmes; what representations he has received in favour of more such incentives; and if he will make a statement.
§ Mr. Norman Lamont
Most private sector R and D expenditure qualifies for immediate tax relief either by deduction in full as a normal trading expense or by way of capital allowances. Capital expenditure on trade-related scientific research qualifies for the special 100 per cent. scientific research allowance. Capital expenditure which a trader incurs on other plant and on industrial buildings will qualify for relief under the normal capital allowances system. My right hon. Friend has received a small number of representations in favour of further incentives. It would be inappropriate for me to comment further at this point.