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Agricultural Buildings Allowance

Volume 487: debated on Monday 2 February 2009

To ask the Secretary of State for Environment, Food and Rural Affairs what assessment he has made of the merits of reinstating the agricultural buildings allowance. (252106)

I have been asked to reply.

The phased withdrawal of agricultural buildings allowance (ABAs) is part of a package of measures which also saw the reduction of the main rate of corporation tax and the introduction of a £50,000 annual investment allowance (AIA), allowing 95 per cent. of businesses to write off all their expenditure on plant and machinery in the year in which it is made.

The Government considered carefully the withdrawal of the ABA as part of this package of measures to modernise and simplify corporation tax. Taken as a whole these reforms to the business and personal tax systems are designed to deliver increases in investment and growth overall.