New Clause 5 - Expenditure incurred in installing access ramps

Part of Finance Bill – in a Public Bill Committee at 11:00 am on 24 June 2004.

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Photo of Mr Howard Flight Mr Howard Flight Shadow Chief Secretary To the Treasury, Economic Affairs, Shadow Chief Secretary to the Treasury 11:00, 24 June 2004

New clause 5 has been tabled at the request of the CBI. It provides for capital allowances under the Capital Allowances Act 2001 to be available for expenditure incurred by installing ramps to facilitate access by disabled persons in order to comply with section 21 of the Disability Discrimination Act 1995. I understand that new clause 13 in effect proposes the same measures.

The Disability Discrimination Act imposes a duty from 1 October on providers of services to take reasonable steps to facilitate disabled persons wishing to make use of their services. That extends to making physical alterations to premises used to provide services.

In many cases, alterations to premises made by businesses will not qualify for immediate tax relief against profits. Therefore, it is proposed that expenditure on ramps required to facilitate the use of premises by disabled persons should be classified for tax purposes as expenditure on plant and machinery, thus qualifying for capital allowances. That would follow the established precedent of capital allowances for fire safety expenditure.

I understand that research carried out by the Disability Rights Commission of the Department for Work and Pensions suggests that many businesses do not have plans to carry out the necessary alterations to their premises. It is therefore arguable that an incentive is needed to encourage action by the Government's deadline of 1 October if they wish that to be met.