Clause 35
Finance Bill
11:45 am
Mark Hoban (Shadow Minister, Treasury; Fareham, Conservative)
Perhaps I can illuminate my hon. Friend on his point about temporary timing differences, and I say that as an accountant. If the Government varied the rate of capital allowances, that would accelerate or decelerate the rate at which that expenditure is recognised for tax purposes. Where an allowance is abolished and not replaced, there is a permanent loss of tax relief. So the changes in the subsequent clause accelerate capital allowances. The changes that we have debated in this clause—in subsequent years, we are talking about the abolition of IBAs—will lead to the permanent elimination of that tax relief.