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Written question asked by Liam Byrne (Labour) on Monday, 9 December 2024, in the House of Commons. It was due for an answer on Wednesday, 11 December 2024. It was answered by James Murray (Labour) on Tuesday, 17 December 2024 on behalf of the Treasury.

Corporation Tax: Investment

Question

To ask the Chancellor of the Exchequer, what estimate she has made of the amount of additional business investment due to the capital allowances measures in the corporate tax roadmap.

Answer

As a government, we are determined to provide the stability needed by businesses to make investments that are critical to boosting growth in the UK.

That is why, in the Corporate Tax Roadmap, the Government has committed to maintaining the fundamental features of our world-leading capital allowances system, for the duration of this Parliament. This includes permanent full expensing system and the £1 million Annual Investment Allowance. As a result of permanent full expensing, the OBR expect business investment to increase by around £3 billion each year, and in the long run GDP will be 0.2% higher each year.

With a stable and predictable capital allowances system, businesses will be able to rebuild the confidence they need to make significant long-term investment decisions.

Secondary information

Type
Written question
Reference
18499
Session
2024-26
Subjects
Corporation tax Investment
Contains statistics
Yes
Link
View this Written question on www.parliament.uk