Mr. Seamus Coffey:

It would reduce the volatility. With the 80% cap, one is ensuring that some amount of the gross profit is included in taxable income every year. One is collecting some corporation tax in each year the asset is here and each year it is generating a profit, whereas under the 100% cap, depending on the way the profits go, one could end up with a position where very little tax is collected on an ongoing basis because the capital allowances almost fully offset the profits. One then faces a big jump. As long as the asset remains and the profit remains, one goes from having maybe all of it being offset by the capital allowance to very little. If one had a cap at a certain level, each year some corporation tax would be collected, and then if there is a jump at the end, it would be at a lower level, because there would be a move from having some profit in taxable income to having a greater amount, but at least there is some to begin with. It reduces the volatility of corporation tax which, as I said earlier, is our most volatile main tax. It would offer benefits.