Abstract
Throughout the postwar period a number of fiscal incentives was introduced to lower the cost of investment and promote capital accumulation in the UK. The most generous incentive was the first year allowance (FYA) which allowed firms to expense all their investment expenditure on plant and up to 75 percent of their expenditure on buildings immediately. In the 1984 Budget, the Chancellor departing from this policy announced the phasing out of the FYA with eventual abolition in 1986. The annual writting down allowance though, was retained.At the same time the corporate tax rate was to be reduced to 35 percent by 1986 in three successive cuts.
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© 1989 Springer-Verlag Berlin Heidelberg
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Dinenis, E. (1989). Anticipated Tax Changes and Investment in the UK: An Empirical Evaluation of the 1984 Tax Reform. In: Funke, M. (eds) Factors in Business Investment. Microeconomic Studies. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-48748-4_7
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DOI: https://doi.org/10.1007/978-3-642-48748-4_7
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