§ Mr. Kenneth Bakerasked the Postmaster-General what provision is to be made for Corporation Tax in the Post Office accounts for 1968–69.
§ Mr. StonehouseNone.
§ Mr. Kenneth Bakerasked the Postmaster General what rate of depreciation is used in determining the profitability of the Post Office in 1968–69; and what rate 123W of depreciation is used in determining its liability to Corporation Tax.
§ Mr. StonehouseThe depreciation rates applying in the Post Office Accounts for 1968–69 for plant, furniture, buildings, motor vehicles and office machines range from 1 per cent. to 15.5 per cent. The average for plant etc. is between 4 and 5 per cent. Provision is generally on a straight line basis.
Various rates apply in determining the Post Office liability to Corporation Tax.
For plant, furniture, motor vehicles and office machines purchased or installed prior to 5th November, 1962, the rates used are five-fourths of the rates agreed with I.R.D. for each type of asset. These rates were roughly consistent with those used by the Post Office in their own accounts but apply for tax computation purposes on a reducing balance basis.
For plant, etc., purchased or installed since 5th November, 1962, the Post Office uses, as appropriate, the rates introduced in the 1963 Finance Act—15, 20 or 25 per cent. on a reducing balance basis. The majority of plant etc. falls within the 15 per cent. group.
Post Office buildings do not qualify for any allowances—initial or annual—when assessing the Corporation Tax liability.