§ Mr. Malcolm BruceTo ask the Chancellor of the Exchequer what is his estimate of the annual cost to the Exchequer of introducing an investment tax allowance of £200,000 per annum for companies. [22828]
§ Mr. Jack[holding answer 26 March 1996]: A 100 per cent. first-year allowance of £200,000 for investment in plant and machinery by companies and unincorporated businesses, introduced from December 1996, has an estimated small initial cost of about £100 million in 1997–98 and would then cost approximately £1.3 billion in 1998£99. The cost would decline subsequently. For companies in groups, it is assumed that the limit is applied to the whole group and not each separate company.