§ Mr. GibbTo ask the Chancellor of the Exchequer if he will estimate the impact on Exchequer revenue of the one per cent. reduction in the main rate of corporation tax after taking into account the introduction of quarterly corporation tax payments. [41847]
§ Dawn PrimaroloThe estimated costs of 1 per cent. cut in the main rate of corporation tax from 1 April 1999 after taking account of quarterly payments are:
Year £ million 1998–99 negligible 1999–00 250 2000–01 900 In table C1 of the 1998–99 "Financial Statement and Budget Report", the costs of the rate change are estimated before allowing for the introduction of quarterly instalments. The overall revenue effects of the changes to corporation tax remain the same.