Capital Allowances

(asked on 1st June 2022) - View Source

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what modelling his Department has undertaken on the extra investment that will be brought forward as a result of the introduction of the investment allowance announced in his Economy Update on 26 May 2022.


Answered by
Lucy Frazer Portrait
Lucy Frazer
Secretary of State for Culture, Media and Sport
This question was answered on 13th June 2022

The new Energy Profits Levy will raise around £5 billion over the next year. This figure factors in the investment allowance.

The Government expects the combination of the Levy and the investment allowance to lead to an overall increase in investment.

The Levy will be legislated for shortly, and a Tax Information and Impact Note will be published as standard. A full costing of the policy will be certified by the independent Office for Budget Responsibility at Autumn Budget 2022.

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