HC Deb 07 December 1951 vol 494 cc341-2W
Mr. Ernest Davies

asked the Assistant Postmaster-General if he will state the net income that would have accrued to the British Broadcasting Corporation from licences issued during the year ended 31st March, 1951, if 15 per cent. of net licence income had been retained by the Treasury, 7½ per cent. had been deducted by the Post Office for expenses, and Income Tax had been on the same basis as for that year, the respective deductions and balance retainable by the British Broad- casting Corporation being shown in monetary units of the £1 sound and £2 television licences.

Mr. Gammons

85 per cent. of the net licence revenue for the year ended 31st March, 1951, would have been £10,280,000. Assuming that the B.B.C.'s expenditure and other revenue had remained unaltered, the Corporation estimates that the provision for Income Tax would have been £538,000.

If the Income Tax liability were deemed to be divisible between the sound and television licences and other income in proportion to the revenue derived from each, the division of the £1 and £2 licences receipts would have been:

Sound £1 Combined Sound and Television £2
(Shillings) (Shillings)
1. Collection, management and interference service. (7½ per cent, of gross revenue) 1.50 3.00
2. Exchequer. (15 per cent, of revenue) 2.78 5.55
3. Balance in hands of the B.B.C. after tax 14.97 29.95
4. Income Tax 0.75 1.50
20.00 40.00