§ Mr. Bruce-Gardyne
asked the Chancellor of the Exchequer what he estimates to be the net annual cost to the Exchequer of halving the level of Corporation Tax paid by companies domiciled in Scotland, halving the minimum distribution requirements imposed on close companies domiciled in Scotland, and abolishing the regional employment premium and premium payments under the Selective Employment Tax.
§ Mr. Diamond
The estimated cost for 1968–69 of reducing the rate of Corporation Tax by half for companies with head offices in Scotland is £40 million. The cost of reducing by half the "required standard" of distributions of close companies in Scotland cannot be precisely estimated, but might be of the order of £5 million to £10 million. The saving which would result from abolishing the regional employment premium and the additional sum in Selective Employment Payments in Scotland would be about £50 million a year.