§ Mr. RedmondTo ask the Chancellor of the Exchequer what balancing charges he expects to recover from the seven passenger ferries which do not comply with the enhanced safety standards, and which their owners have declared to be uneconomic to repair.
§ Mr. Norman LamontI cannot comment on the tax affairs of particular individuals or companies.
386WBalancing charges are made to recover tax relief given for depreciation of a business asset which turns out to be greater than the depreciation actually experienced. The need to make such a charge depends on the precise circumstances of each case and, in particular, on whether the disposal value exceeds any expenditure on the ship which remains unrelieved for tax purposes.