Mr. O'NeillTo ask the Chancellor of the Exchequer if he will estimate the cost of(a) increasing the existing 40 per cent. first year capital allowance to 100 per cent. on a permanent basis and (b) the additional cost of extending these allowances to assets leased by SMEs. [R] [80495]
§ Dawn PrimaroloIf the extension by one year of 40 per cent. first year allowances for SMEs announced in the Budget were made permanent and increased to 100 per cent., the additional Exchequer cost would be £0.75 billion in 2000–01 and £1.3 billion in 2001–02. From 2002–03, annual costs would decrease steadily to reach £0.5 billion a year.
The cost of extending these allowances to include assets leased by SMEs is not available.