§ Sir David MitchellTo ask the Chancellor of the Exchequer what he estimates to be the cost to the Exchequer of making the first £50,000 or the first £100,000 of retained profits of small companies free of corporation tax with suitable safeguards to prevent the concession applying to associated companies.
§ Mr. DorrellThe Exchequer cost of making the first £50,000, or £100,000, of taxable profits free of corporation tax for companies normally liable at the small company rate would be about £½ billion, or £1 billion, respectively per annum. It is assumed that companies' liability to account for advance corporation tax and the rules for setting it against corporation tax are unaffected.