§ Mr. Austin Mitchell
asked the Chancellor of the Exchequer whether he will publish in the Official Report a table showing for (i) all companies and (ii) manufacturing companies the estimated amount in losses and allowances from past years available to offset against profits in the current year, the estimated amount of allowances and the amount of interest deductible as a business expense likely to accrue in the present year, the current rates of corporation tax and the expected yield in each category and the estimated yield in each category if the rate were to be increased to 50 per cent.
§ Mr. Norman Lamont
The total of accumulated tax losses is about £25 billion, excluding the public sector, of which some £10 billion is in manufacturing companies. These estimates are extremely tentative.
The available figures of interest paid by companies appear in table 5.1 of the National Income Blue Book. There is no industrial breakdown available apart from the separation of the totals into financial companies and institutions (table 5.5) and industrial and commercial companies (table 5.4). The 1986 issue, with figures up to 1985, will be available in September.
Capital allowances in 1985 are tentatively estimated to have been of the order of £18 billion. I regret that estimates of the amount in manufacturing are not available for that year.
The current (1986–87) rates of corporation tax are 35 per cent. (main rate) and 29 per cent. (small companies' 673W rate). The estimated yield for 1986–87 is £11.7 billion, as published in the Financial Statement and Budget Report. No breakdown for manufacturing companies is available.
The yield of mainstream corporation tax in 1986–87 is largely determined by profits arising in the two previous years. An increase to 50 per cent. in the current year would have a very small impact on revenues in this year.