§ Mr. John Wells
asked the Chancellor of the Exchequer at what rates operators of hire boat fleets are now permitted to depreciate cabin cruisers and sailing craft in the first and each subsequent year.
§ Mr. Diamond
Vessels of this kind have never been regarded as ships for the purposes of capital allowances and do not qualify for free depreciation. Under the existing law they may qualify for investment allowances, but as a result of the introduction of the investment grant scheme these allowances are being withdrawn. If the vessels are operated for the purpose of a trade they will in future qualify for an initial allowance of 30 per cent.: the rate of annual allowance is 15 per cent. on written down value (or 12½ per cent. if the vessel was acquired before 6th November, 1962).