§ Sir John FarrTo ask the Chancellor of the Exchequer if he will take steps to remove the balancing charge under which a British ship owner when disposing of old ships pays to the Treasury one third of the proceeds; and if he will make a statement.
§ Mr. Norman LamontI have noted my hon. Friend's suggestion. Balancing charges are made to recover tax relief for depreciation given in excess of the depreciation actually experienced. Whether such a charge needs to be made and, if so, the amount of the charge depends on the particular circumstances of each individual case.