Capital Allowances

Treasury written question – answered on 31st March 2022.

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Photo of Rachel Reeves Rachel Reeves Shadow Chancellor of the Exchequer

To ask the Chancellor of the Exchequer, by how much the Office for Budget Responsibility revised up or down its estimate of the impact of the Corporation Tax Super-deduction on business investment between the October 2021 Economic and Fiscal Outlook and the March 2022 Economic and Fiscal Outlook.

Photo of Rachel Reeves Rachel Reeves Shadow Chancellor of the Exchequer

To ask the Chancellor of the Exchequer, if he will place a copy of any interim or final evidence held by his Department on the effectiveness of the Corporation Tax Super-deduction in stimulating business investment, including quantitative data, process or outcome evaluation, in the Library.

Photo of Lucy Frazer Lucy Frazer The Financial Secretary to the Treasury

In the latest Economy and Fiscal Outlook, the OBR have said that the super-deduction and the easing of global supply bottlenecks means they still expect historically high growth in business investment over 2022. The OBR have revised down the anticipated peak amount of business investment brought forward by the super-deduction to 5 per cent in 2022-23 (from the 10 per cent previously assumed).

A full evaluation of the effectiveness of the super-deduction in stimulating business investment will require HMRC to hold corporate tax returns for the financial years 2021-22 and 2022-23. Any externally commissioned evaluation will be published in the usual way, in line with the Government Social Research Publication Protocol.

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