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Rail Freight Facilities (Grants)

Volume 886: debated on Wednesday 19 February 1975

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asked the Secretary of State for the Environment when the scheme for providing grant towards rail freight facilities as outlined in Section 8 of the Railways Act 1974 will come into operation; and if he will make a statement.

Plans for administering the rail freight facilities grant have now been worked out in conjunction with my right hon. Friend the Secretary of State for Scotland and my right hon. and learned Friend the Secretary of State for Wales, who will be responsible for the scheme in their respective countries. Applications can be accepted for grant in respect of projects initiated after 31st July 1974, the date of Royal Assent. The rate of grant is to be 50 per cent. of the cost of eligible facilities and the balance will qualify as capital allowances for corporation tax purposes in the normal way. This could mean that a company paying corporation tax might have to find as little as 24 per cent. of the cost of providing its rail freight handling facilities.An explanation of the scheme together with notes for guidance of applicants can be obtained from the Departments concerned.