§ Mr. BayleyTo ask the Chancellor of the Exchequer if he will estimate the effect on revenue in 1996–97 and a full year of restricting the carry back of ACT to(a) three years, (b) two years and (c) one year. [42284]
§ Mr. JackThe Exchequer effect of restricting ACT carry back from 1996–97 would depend on future levels of profits and dividends. On the basis of the economic forecasts in the 1995 summer economic forecast, the yield from restricting carry back to one, two or three years might be between £100 million and £200 million in a full year. The receipts effect in 1996–97 would be negligible. More detailed estimates cannot be made reliably.