§ Mr. Tim SmithTo ask the Chancellor of the Exchequer what would be the cost of applying the proposal to extend the period for which a company can carry back a trading loss from one year to three years to losses in accounting periods ending(a) on or after 1 April 1990 and (b) on or after 1 October 1990; and what are the reasons why the necessary legislation will be introduced only at the Committee stage of the Finance Bill.
§ Mr. Maude[holding answer 28 March 1991]: The cost of applying the proposal to extend the period for which a company can carry back a trading loss from one year to three years is estimated at (a) £250 million in 1991–92 for accounting periods ending on or after 1st April 1990, and (b) £200 million in 1991–92 for accounting periods ending on or after 1st October 1990. The proposed legislation will be introduced at the Committee stage because it will not be possible to complete it in time for inclusion in the Finance Bill as published.