§ Mr. Hirstasked the Chancellor of the Exchequer what is the practice of the Inland Revenue as to the period in which first year allowances may be claimed where the qualifying expenditure was incurred on or prior to the end of an accounting period, but, by reason of credit terms, payment does not have to be made until the subsequent accounting period.
§ Mr. Moore[pursuant to his reply, 12 March 1984, c.58]: for capital allowance purposes, expenditure on plant and machinery is normally treated as incurred on the date when the purchaser is legally required to make payment. In the case of a credit agreement, the chargeable period for which first year allowances are due will normally be determined by the date when payment has to be made under the terms of that agreement.