§ Mr. David Price
asked the Chancellor of the Exchequer what would be the estimated annual cost to the Exchequer of relieving all building societies of their liability to corporation tax; and, in the light of prevailing prime interest rates, what he estimates would be the consequential effects of such tax relief upon the current level of borrowing and lending rates, respectively, of the building societies.
§ Dr Gilbert
The cost of relieving all building societies of their corporation tax liability is estimated at £8 million. Consequential effects on borrowing or lending rates would be negligible.