HC Deb 28 March 1984 vol 57 cc205-6W
Mr. Hirst

asked the Chancellor of the Exchequer, pursuant to the answer on 13 March, Official Report, column 140, what is the practice of the Inland Revenue as to the period in which first year allowances may be claimed where machinery or plant is purchased for settlement on or before 30 days after the date of the invoice and (a) the purchase is invoiced and payment is made prior to the end of an accounting period but the 30-day settlement period expires in the subsequent accounting period, or (b) the purchase is invoiced prior to the end of an accounting period but payment is made, and the 30-day settlement period expires, in the subsequent accounting period, or (c) the purchase is invoiced and the 30-day settlement period expires prior to the end of an accounting period but payment is made in the subsequent accounting period.

Mr. Moore

The position would be as follows(a) and (b) a first year allowance would normally be due for the chargeable period in which payment was made. (c) entitlement to a first year allowance would normally be determined by reference to the date on which the vendor became entitled to take legal action to enforce payment by the purchaser.

If my hon. Friend has a particular case in mind, I shall be glad to look at it if he will give me the details.

assurance that the provisional indications of funding already given to the University Grants Committee for the years covered by the recent public expenditure White Paper—Cmnd. 9143—will not be reduced on account of any savings generated by the study.