HC Deb 04 February 1974 vol 868 cc250-1W
Mr. Meacher

asked the Chancellor of the Exchequer what has been, for each year since 1945, the level of gross company United Kingdom trading profits; the level of these profits net of corporation tax, or its preceding equivalent, at current prices; the level of these profits net of tax at 1945 prices, and the percentage annual change in these profits at 1945 prices; and what are the equivalent figures for dividends or interest payments since 1945.

Mr. Nott

, pursuant to his reply [OFFICIAL REPORT, 31st January 1974; Vol. 868 c. 139], gave the following information:

Estimates of the gross trading profits of companies for the years 1951 to 1972

Dividend and interest payments by companies (before deduction of tax at source) Dividend and interest payments by companies (after deduction of tax at source)* Annual percentage increase in internal purchasing power of the pound Dividend and interest payments (after deduction of tax) adjusted to 1956 purchasing power Annual percentage change in column (4)
(1) (2) (3) (4) (5)
£m. £m. £m.
1956 … 951 618 — 618 —
1957 … 1,033 671 3.2 650 + 5.2
1958 … 1,107 724 2.7 683 + 5.1
1959 … 1,203 803 0.6 753 +10.2
1960 … 1,515 1,028 1.0 954 +26.7
1961 … 1,707 1,161 2.9 1,047 + 9.7
1962 … 1,758 1,193 3.8 1,037 −1.0
1963 … 1,908 1,296 2.0 1,105 + 6.6
1964 … 2,166 1,453 3.3 1,199 + 8.5
1965 … 2,549 1,758 4.8 1,385 +15.5
1966 … 2,705 1,825 3.9 1,383 − 0.1
1967 … 2,762 1,878 2.5 1,389 + 0.4
1968 … 2,953 2,042 4.7 1,442 + 3.8
1969 … 3,308 2,311 5.4 1,548 + 7.4
1970 … 3,347 2,333 6.4 1,469 − 5.1
1971 … 3,591 2,531 9.4 1,457 − 0.8
1972 … 3,786† 2,708† 7.1 1,455 —0.1
* Tax on dividends and most interest paid was deducted at source at the standard rate. Some recipients are liable on the top slice of their total income at higher or lower rates, and others—e.g., charities—are not liable to tax on dividends and interest received.
† The timing of payments of dividends on ordinary shares in 1972 was affected by delays m order to take advantage of the transitional arrangements for changeover to the new system of corporation tax in 1973, the effect being to distort figures for 1972 downwards.