§ Mr. Sayeedasked the Secretary of State for Transport what is the net present value per £100 of investment of the tax allowances granted to investors in ships in the United Kingdom; and what information he has on the tax allowances, including accelerated depreciation, investment grants and interest-free loans available in the Federal Republic of Germany.
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§ Mr. Michael SpicerThe net present value to companies of tax relief on annual writing down allowances at the rate of 25 per cent. of the reducing balance per £100 of the cost of a ship, will be about £28 if there are profits sufficient to absorb the full amount of the allowances. Additionally, this year the business expansion scheme was extended to companies engaged in ship chartering. The value of the income tax relief will depend upon the tax position of the investor but might typically be about £50 for every £100 invested.
With regard to tax allowances in the Federal Republic of Germany, I cannot add to the information given to my hon. Friend in my reply of 26 November 1986, at column 276.