§ Dr. CableTo ask the Chancellor of the Exchequer what estimate he has made of numbers of the companies which will pay corporation tax at(a) 10 per cent. and (b) a marginal rate of 22.5 per cent. [79080]
§ Dawn PrimaroloAround 270,000 small and growing companies will pay less tax on profits as a result of the Chancellor's proposal to introduce a new 10 per cent. rate of corporation tax from 1 April 2000. Around 150,000 companies will pay corporation tax at 10 per cent. on profits of up to £10,000. Around 120,000 companies with profits between £10,000 and £50,000 will pay tax at an average rate of between 10 per cent. and the small companies' rate (20 per cent. from 1 April 1999) and have a lower tax bill as a result. This represents tax at 10 per cent. on the first £10,000 of profit and tax at 22.5 per cent. on the amount by which profits exceed £10,000 (with a 20 per cent. small companies' rate of corporation tax).