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Industrial Buildings Allowances

Volume 485: debated on Monday 15 December 2008

To ask the Chancellor of the Exchequer what his estimate is of the cost to the Exchequer of the industrial buildings allowance in each of the last five years; what percentage of such expenditure was accounted for by the construction of new hotels; and if he will make a statement. (242889)

The average annual value of IBA relief claimed by businesses was approximately £2.2 billion per annum between 2003 and 2005. The cost of this to the Exchequer is estimated to be approximately £600 million per annum.

Businesses with a primary activity operating hotels during this period accounted for, on average, an estimated £180 million per annum; with an estimated cost to the Exchequer of £45 million to £50 million per year.

Information for later years is not yet complete.