HC Deb 04 April 1973 vol 854 cc115-7W
Mr. David Mitchell

asked the Chancellor of the Exchequer (1) what is his estimate of the number of firms which

distributed profits, or any other specified sources; and, for each year, what was the aggregate pool of capital funds derived from these sources.

Mr. Nott

Sources of capital funds to industrial and commercial companies from 1960 onwards are estimated as follows:

will gain from the change in the system of corporation tax whose profits lie in the following bands, both in total and sub-divided into quoted and unquoted companies: £25,000-£40,000, £25,000-£50,000, £25,000-£70,000 and £25,000-£100,000.

(2) what is his estimate of the reduction in retained profits occasioned by the change in corporation tax on companies whose profits are above the level of £25,000 but do not exceed £100,000, and if he will break the figure down between quoted and unquoted companies.

Mr. Nott,

pursuant to his reply [OFFICIAL REPORT, 3rd April 1973; Vol. 854, c. 84], circulated the following reply:

This information is not available.

Mr. David Mitchell

asked the Chancellor of the Exchequer what is his estimate of the number of firms whose corporation taxable profits lie in the following bands, both in total and sub-divided into quoted and unquoted companies, £25,000-£40,000, £25,000-£50,000, £25,000-70,000 and £25,000-£100,000.

Mr. Nott,

pursuant to his reply [OFFICIAL REPORT, 3rd April 1973; Vol. 854, c. 84], circulated the following reply:

Information in the exact form asked for is not available, but the estimated number of companies by net amount of profit chargeable to corporation tax in respect of accounting periods ended in the year to 31st March 1969 is available in the following ranges:

Net amount chargeable (£00) Estimated number of companies*
20 to under 100 17,483
30 to under 100 11,198
50 to under 100 5,251
* Including assessments for which agreement was incomplete at 31st October 1970.

Separate information for quoted and unquoted companies is not available but the majority of companies in these size ranges will be unquoted.

Mr. David Mitchell

asked the Chancellor of the Exchequer what is the cost to the Exchequer of extending the limits of small company corporation tax relief from £15,000-£25,000 to £20,000-£30,000 or to £30,000-£40,000 or to £50,000-£60,000 or to £70,000-£80,000 or to £90,000-£100,000 respectively.

Mr. Nott,

pursuant to his reply [OFFICIAL REPORT, 3rd April 1973; Vol. 854, c. 84], circulated the following reply:

Information in the exact form asked for is not available, but the following figures illustrate the additional costs of extending the relief for small companies provided for in Section 95 of the Finance Act 1972 by raising the lower relevant maximum amount by stages to £100,000 with consequential increases in the upper relevant maximum amount:

Relevant maximum amount (£00)
Lower Upper Estimated additional cost (£m.)
30 50 25
50 75 40–50
75 100 50–70
100 150 70–100