§ Mr. Joel Barnettasked the Chancellor of the Exchequer what estimate he has made of the increased yield from corporation tax if the rate of capital allowances on plant in the first year for firms outside the development areas was 25 per cent., 40 per cent., 50 per cent., 60 per cent., and 75 per cent., respectively.
§ Mr. NottThe effect in 1973–74 if the charge applied to expenditure after 31st March 1973 would be neglible. The additional yields of corporation tax from reducing first-year allowances on plant and machinery outside the development66W areas from 100 per cent. for the next two years is estimated to be of the order of:
£m. current prices Rate of first year allowance Financial Year 1974–75 1975–76 25 per cent. … … 520 900 40 per cent. … … 410 720 50 per cent. … … 340 600 60 per cent. … … 270 480 75 per cent. … … 170 300