asked the Minister for Finance the cost to the Exchequer of the following tax allowances or reliefs applicable to businesses in respect of the years 1978, 1979, 1980, 1981 and 1982 and the estimated cost in 1983, where applicable: (1) accelerated capital allowances, (a) leased equipment, (b) other equipment; (2) export sales relief; (3) "Shannon" relief; (4) stock relief; (5) interest charges paid by business; (6) 10 per cent manufacturing tax rate; (7) reduced rate of corporation tax for small companies; (8) expenditure on rented accommodation (Ref.: Finance Act, 1981, section 23); (9) expenditure on multi-storey car parks (Ref.: Finance Act, 1981, section 24); (10) expenditure on toll roads, bridges and viaducts (Ref.: Finance Act, 1981, section 25); and (11) section 84 loans.
Written Answers. - Tax Relief to Businesses.
The following table sets out the information requested in so far as it is available:—
Cost to the Exchequer
|
Allowance or relief |
1978 |
1979 |
1980 |
1981 |
1982 |
1983 |
|
£ million |
£ million |
£ million |
£ million |
£ million |
£ million |
|
|
1) Accelerated capital allowances for machinery or plant |
(1978-79) |
(1979-80) |
(1980-81) |
(1981-82) |
||
|
Not |
Not |
|||||
|
(a) leased equipment |
20.0 |
39.0 |
34.5 |
38.5 |
available |
available |
|
Not |
Not |
|||||
|
(b) other equipment* |
17.0 |
18.0 |
31.0 |
35.5 |
available |
available |
|
2) Export sales relief |
(1978-79) 53.0 |
(1979-80) 86.0 |
(1980-81) 93.0 |
(1981-82) 106.0 |
Not available |
Not available |
|
(1978-79) |
(1979-80) |
(1980-81) |
(1981-82) |
Not |
Not |
|
|
3) ‘Shannon’ relief* |
5.0 |
8.0 |
10.0 |
10.0 |
available |
available |
|
4) Stock relief* |
17.0 |
15.0 |
9.0 |
11.0 |
13.5 |
7.5 |
|
Not |
Not |
Not |
Not |
Not |
Not |
|
|
5) Business interest(1) |
available |
available |
available |
available |
available |
available |
|
6) 10% manufacturing tax rate* |
Not applicable |
Not applicable |
Not applicable |
Nil |
17.0 |
39.0 |
|
7) Reduced rate of corporation tax for small companies* |
4.5 |
5.0 |
5.5 |
7.0 |
8.0 |
7.5 |
|
Not |
Not |
Not |
||||
|
8) Rented accommodation(2) |
applicable |
applicable |
applicable |
Nil |
Nil |
2.0 |
|
Not |
Not |
Not |
||||
|
See note (3) below |
||||||
|
9) Multi-storey car parks(3) |
applicable |
applicable |
applicable |
|||
|
10) Toll roads, bridges and viad- ucts (3) |
Not applicable |
Not applicable |
Not applicable |
|||
|
Not |
||||||
|
11) ‘Section 84’ loans |
1.3 |
1.7 |
5.3 |
12.7 |
28.1 |
available |
General Notes
(a) The estimates given in the table are in respect of the period of twelve months beginning on 1 January in each year except in the case of (1) accelerated capital allowances, (2) export sales relief and (3) ‘Shannon' relief which are available only in respect of the income tax year.
(b) Many of the estimates supplied are very tentative and are subject to a wide margin of error. This applies particularly to items marked*.
Notes on table
(1) Business interest. Statistics are not available which would enable the information requested to be given. To obtain the information sought would require an individual examination of numerous tax returns for the years in question and such an examination could only be carried out at a disproportionate cost.
(2) Rented accommodation. The cost of the relief estimated at £2 million for 1983 is a partial cost in respect of dwelling units completed and let since 29 January 1981. The full cost of the relief in respect of the total qualifying expenditure incurred up to the end of 1982 is estimated to be £18 million but this is expected to be spread over a number of years.
(3) Multi-storey car parks and Toll roads, bridges and viaducts. In view of the limited amount of activity taking place in these areas it would be contrary to secrecy obligations to disclose any information about the extent of the tax relief likely to be availed of by taxpayers.