§ Mr. Skeetasked the Chancellor of the Exchequer what he assesses the effect of the change of capital allowances and the removal of free depreciation will be upon the United Kingdom shipping industry.
§ Mr. MooreThe changes in the capital allowances proposed by my right hon. Friend are part of a wider604W reform of business taxation, which includes substantial reductions in the rates of corporation tax together with the abolition of the national insurance surcharge and stock relief. The precise net effect of these changes on tax liabilities of shipping companies in future years will depend, amongst other things, on the rate of new investment, the rate of disposal of existing vessels, the level of profits and the extent of tax exhaustion.