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Mr. David Shaw
To ask the Chancellor of the Exchequer what would be the estimated cost of replacing the existing capital expenditure allowance rates by straight line rates of (a) year one-33⅓ per cent., year two-331 per cent., year three-331/3 per cent. and (b) year one-25 per cent., year two-25 per cent., year three-25 per cent., year four-25 per cent., if the levels of capital expenditure and business profits (1) stayed constant, (2) increased by 10 per cent. and (3) increased by 50 per cent.
Mr. Maude
[holding answer 6 March 1992]: Maximum estimates of the annual Exchequer costs of the proposed rates for new capital expenditure on plant and machinery are:
£ billions | ||
Assumed changed in capital expenditure and profits | Straight line allowance at: | |
Percentage | 331/3 per cent. | 25 per cent. |
0 | 2·7 | 2·0 |
+ 10 | 2·9 | 2·2 |
+ 50 | 4·0 | 3·0 |