§ Mr. Cormackasked the Chancellor of the Exchequer what the estimated loss of revenue would be if building societies were exempted from their tax liabilities for the next two years.
§ Dr. GilbertI regret that it is not possible to provide estimates of what the total tax liabilities of building societies might be over the next two years. However, the corporation tax due from building societies on the undistributed balance of their total profits is currently running at a rate of about £8 million per annum. In addition, the amount due from building societies which represents income tax on the interest paid to investors on their shares and deposits, if calculated at the interest rates and tax rates in force at228W the end of 1973–74 and expressed as an annual rate, would be about £380 million.