HC Deb 08 February 1967 vol 740 cc327-8W
Mr. A. Royle

asked the Chancellor of the Exchequer how much reduction in revenue and what increase in Corporation Tax would be required to regain a similar amount for the Exchequer if the standard rate of Income Tax is reduced by 3d., 6d., 9d., 1s., 2s., and 3s., respectively.

Mr. MacDermot

On the basis of the 1966–67 estimates the figures for a full year are as follows:—

Reduction in standard rate by itself Cost for a full year Increase in rate of Corporation Tax (to nearest 1 per cent.)
m.) Per cent.
3d. 64 2
6d. 127 4
9d. 191 6
1s. 257 9
2s. 523
3s. 905*
* This assumes that the higher reduced rate is also reduced to 5s. 3d.
† The estimated increases in the rates of Corporation Tax take account of the consequential side effects on overspill relief and on the yield from income tax under Schedule F on dividends, etc. To produce a net yield of £523m. or £905m. the rate of Corporation Tax would have to be so high that the consequential effects become too speculative, and so no figures have been given for these two cases.

Forward to