§ Mr. Barnettasked the Chancellor of the Exchequer what estimate he has made of the cost of removing the limit on directors' remuneration allowed as a deduction for Corporation Tax in the case of close companies, and the cost if the limit were increased to £5,000 per annum for each director.
§ Mr. MacDermotNo estimate has been made of the cost of removing the limit because it is impossible to forecast the effect upon the level of remuneration. The cost of increasing the limit of £5,000 for each director is estimated at something between £25 million and £30 million, for the first full year, depending on the rate of tax.