Clause 42 - Plant and machinery allowances: anti-avoidance

Part of Finance Bill – in a Public Bill Committee at 1:30 pm on 14 June 2012.

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Photo of Nigel Mills Nigel Mills Conservative, Amber Valley 1:30, 14 June 2012

I am grateful for those answers, if a little disappointed that little progress is being made.

I point out to the Minister that in its review of small business taxation, the Office of Tax Simplification is now allowing very small businesses, quite rightly, to tax just their effective cash increase each year, and not make any adjustments for tax purposes at all. That goes in the direction of a simpler regime.

There is an issue that will need to be looked at, at some point, because, as I understand it, our regime for investment in infrastructure is one of the least attractive in the EU because we do not give capital allowances for things such as industrial buildings and new factories. There is a general issue to watch, but the amendment was a probing one; therefore I beg to ask leave to withdraw the amendment.