§ Mr. Peter Ainsworth
To ask the Chancellor of the Exchequer what arrangements are being made to publish the draft legislation on enhanced capital allowances proposed in the autumn statement.
§ Mr. Dorrell
The Inland Revenue will be making available on Monday 21 December 1992 the draft clauses which will implement the Chancellor's proposals on capital allowances announced in the autumn statement. These will introduce a new 40 per cent. first-time allowance for expenditure incurred on machinery and plant—excluding most cars—in the year ending 31 October 1993. They will also introduce a 20 per cent. initial allowance for the construction of new industrial and agricultural buildings which are contracted for in the 12 months ending 31 October 1993 and brought into use by the end of 1994.382W
In addition, the Chancellor proposes that, in one respect, the scope of the new relief for industrial and agricultural buildings will go further than previously announced. This is to be extended to include certain expenditure on existing and part-completed buildings which have not previously been used and which are bought from a person whose trade is the construction of buildings for sale. To qualify, such buildings must be purchased under a contract entered into the year ending 31 October 1993 and brought into use by the end of 1994.
The legislation for these measures will be included in the 1993 Finance Bill. A copy of the draft clauses, and the Inland Revenue press release announcing their publication, will be placed in the Library of the House of Commons.