§ 38. Sir J. Langford-Holtasked the Chancellor of the Exchequer what he expects taxation on profits of companies to yield in 1966–67 as a percentage compared with 1965–66.
§ Mr. MacDermotNo simple comparison between the two years is possible. The Budget estimates for 1966/67 included £1,000 million Corporation Tax and £95 million Profits Tax; out of the 231W estimate for Income Tax about £170 million was attributable to companies, representing tax on past profits or on investment income. Against this must be set overspill payments estimated at £60 million. This leaves a net figure of £1,205 million. In 1965–66 companies paid £438 million Profits Tax and about £1,235 million Income Tax, a total of £1,673 million. Companies were, however, entitled to deduct and retain Income Tax on all dividends, etc., and some of these were paid out of profits which had not suffered Income Tax.