§ Ms. MahonTo ask the Secretary of State for the Environment what information is available on the £1 billion tax allowance to the developers of Canary wharf, whether this amount of tax concession was envisaged when the enterprise zones were established; and if he will make a statement.
§ Mr. Norman LamontI have been asked to reply.
I cannot comment on the tax affairs of particular individuals or companies. The position generally is that a property developer who builds property for sale, whether within an enterprise zone or elsewhere, incurs his expenditure on revenue account and is entitled to relief for all expenditure incurred wholly and exclusively for trade purposes under the normal business expenses rules. The amount of relief available by way of the special 100 per cent. initial allowance to those who incur capital expenditure on the construction of property within an enterprise zone will depend on how the expenditure is split between business buildings and non-qualifying premises such as residential dwellings.