HC Deb 03 June 1965 vol 713 cc1977-8

4.28 p.m.

Sir Cyril Black (Wimbledon)

I beg to move Amendment No. 58, in page 50, line 6, after "rate", to insert: (hereinafter referred to as 'the standard rate of corporation tax')".

The Chairman

With the Amendment we will be taking Amendment No. 59, in page 50, line 6, after "determine", insert: but any such rate shall be reduced on small profits in accordance with the provisions of the following three subsections";

Amendment No. 60, in line 9, at end insert: Provided that the rate at which corporation tax may be charged in respect of any company shall not exceed such percentage of the standard rate of corporation tax as is specified in relation to the profits of such company in column 2 of Schedule (Rates at which corporation tax may be charged) to this Act;

Amendment No. 61, in page 50, line 9, at end insert: (2) Where the profits arising in any chargeable accounting period from a trade or business, computed apart from the provisions of this and the two next succeeding subsections and including franked investment income, do not exceed two thousand pounds, the profit arising from the trade or business for that period shall be deemed for all the purposes of the enactments relating to the profits tax to be nil. (3) Where the profits arising in any chargeable accounting period from a trade or business computed apart from the provisions of the preceding subsection, this subsection and the next succeeding subsection, and including franked investment income, exceed two thousand pounds but are less than twelve thousand pounds, the profits arising from the trade or business in that period shall, subject to the provisions of this section, be deemed for all the purposes of the enactments relating to the corporation tax, to be reduced—

  1. (a) where there is no franked investment income, by a sum equal to one-fifth of the difference between the amount of the profits computed as aforesaid and twelve thousand pounds;
    2. 1978
  2. (b) where there is franked investment income, by a sum which bears to one-fifth of the difference between the profits, computed as aforesaid and including franked investment income, and twelve thousand pounds the same proportion that the profits arising in that period from the trade or business, computed as aforesaid but not including franked investment income, bear to the profits arising in that period from the trade or business, computed as aforesaid but including franked investment income.
(4) In relation to a chargeable accounting period of less than twelve months, references in this section to two thousand pounds and twelve thousands pounds shall be construed as references to a sum which bears the same proportion to two thousand pounds or twelve thousand pounds, as the case may be, as the length of the period bears to twelve months.

Amendment No. 68, in Clause 45, page 55, line 3, after first "the", insert "standard", and Amendment No. 85, the proposed new Schedule.

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