§ Mr. Alisonasked the Chancellor of the Exchequer by what authority inspectors of tax are now assessing companies for Corporation Tax at 42½ per cent. on profits earned after 31st March, 1968.
§ Mr. Roy Jenkins:I assume that the hon. Member is concerned with the corporation tax charge for the financial year 1967 i.e. on profits arising in the twelve months ending on 31st March, 1968. In a statement published on 18th November last, my predecessor announced the Government's intention to propose that the rate of corporation tax for the financial year 1967 should be fixed at 42½ per cent. This proposal will come before the House in due course, but until it does there is no authority for imposing corporation tax at any rate other than the last rate fixed by Parliament i.e. 40 per cent.