§ Mr. Tony Spellerasked the Chancellor of the Exchequer if he will reinstate the 100 per cent. write-off on machinery against capital allowances; and if he will make a statement.
§ Mr. Norman Lamont[pursuant to his reply, 28 November 1986, c. 399]: No. The phasing out of 100 per cent. first year allowances for capital expenditure on machinery or plant was an integral part of the business tax
470W
Earnings after income tax, national insurance contributions1 and child benefit £ per week Single man Married man3 no children Married man3 two children4 Married man3 four children5 Single Woman At current prices At constant April 1986 prices2 At current prices At constant April 1986 prices2 At current prices At constant April 1986 prices2 At current prices At constant April 1986 prices2 At current prices At constant April 1986 prices2 Lowest decile of earnings April 19796 44.09 79.32 47.90 86.17 55.90 100.56 63.90 114.95 32.78 58.96 April 1986 82.09 82.09 89.45 89.45 103.45 103.45 117.45 117.45 64.41 64.41 Lower quartile of earnings April 19796 52.62 94.65 56.43 101.51 64.43 115.90 72.43 130.29 37.26 67.02 April 1986 100.94 100.94 108.30 108.30 122.30 122.30 136.30 136.30 73.16 73.16 Median of earnings April 19796 63.94 115.01 67.75 121.86 75.75 136.15 83.75 150.64 43.55 78.34 April 1986 127.78 127.78 135.15 135.15 149.15 149.15 163.15 163.15 89.53 89.53 reform strategy. This was specifically aimed at producing a more neutral system based on lower rates of tax and allowances for depreciation more closely linked to the useful life of capital assets.