§ Mr. Butterfill
asked the Chancellor of the Exchequer if he will estimate the cost to the Exchequer of extending industrial building allowances to (a) hotels and (b) leisure and entertainment buildings; and if he will make a statement.
§ Mr. Moore
Capital allowances are already given for hotels and will be 4 per cent. straight line writing-down allowances from 1 April 1986, the same rate as for all industrial buildings.
Leisure and entertainment buildings do not receive capital allowances for the cost of buildings, although some of the cost of many of these buildings will qualify for plant and machinery allowances. If industrial building allowances were extended to this sector, the first full year cost to the Exchequer would be less than £5 million; this could rise over 25 years to around £50 million a year at current levels of expenditure.