Mr. RobertsonTo ask the Chancellor of the Exchequer if he will assess the benefits of introducing tax incentives492W for new companies which operate below the threshold of turnover above which they would receive exemption certificates; and if he will make a statement. [117338]
§ Dawn Primarolo[holding answer 3 April 2000]: There are no plans to introduce tax incentives for companies (or other businesses) that carry out construction operations but whose construction turnover is insufficient to enable them to pass the turnover test for the new Construction Industry Scheme.
However, a Joint Working Group comprising officials from the Inland Revenue, the Department of the Environment, Transport and the Regions, and representatives from the Construction Industry, is being set up to review the scheme. This group will be considering the introduction of in-year repayments for companies that do not pass the turnover test, which will improve the cash flow position of those companies that receive payments under the scheme after deductions on account of tax and NIC.