§ Mr. Barry FieldTo ask the Chancellor of the Exchequer what representations he has had concerning the abolition of capital allowances from guest houses and small hotels.
§ Mr. Norman LamontCapital allowances have not been abolished. Annual writing down allowances remain available for construction costs of guest houses and small hotels which satisfy certain minimum criteria and for capital expenditure on machinery or plant for business use. Rates of allowance now correspond more close with rates of commercial depreciation. A number of representations have been received from the hotel industry about the withdrawal of incentive first year and initial allowances.