§ Mr. Sillarsasked the Chancellor of the Exchequer how many foreign language versions of the Government statement on Investment Incentives, Command Paper No. 4516, have been issued by his Department.
§ Mr. Patrick JenkinNone.
§ Mr. Sheldonasked the Chancellor of the Exchequer what is the value in development and non-development areas of the new capital allowances for an asset with a life of 10 years to a purchaser of plant or machinery, assuming interest charges of 10 per cent. and using discounted cash flow calculations.
§ Mr. HigginsThe net present value to an investing firm, discounting at 10 per cent. and assuming Corporation Tax, at 42½ per cent. would be £36 per £100 of investment expenditure in the case of free depreciation in development areas and £32 elsewhere.
§ Mr. Sheldonasked the Chancellor of the Exchequer what was the value in development and non-development areas of investment grants together with capital allowances before October, 1970, for an asset with a life of 10 years to a purchaser of plant or machinery, assuming interest charges of 10 per cent. and using discounted cash flow calculations.
§ Mr. HigginsThe net present value to an investing firm, discounting at 10 per cent. and assuming annual allowances of 15 per cent. on the reducing balance and 397W Corporation Tax at 45 per cent., would be £52 per £100 of investment expenditure in the case of a 40 per cent. investment grant in a development area and £39 in the case of a 20 per cent. investment grant elsewhere.