HC Deb 16 July 1974 vol 877 cc95-6W
Mr. David Mitchell

asked the Chancellor of the Exchequer if he will publish a table showing the estimated net additional cost to the Exchequer of lifting corporation tax relief for small companies from £15,000, graded off to £25,000 as provided in the 1972 Finance Act, to £18,000, graded off to £28,000, £20,000, graded off to £30,000, £25,000, graded off to £35,000, £30,000, graded off to £40,000, £35,000. graded off to £45,000, £40,000, graded off to £50,000, £45,000, graded off to £55,000, £50,000, graded off to £60,000, and £55,000, graded off to £65,000 and similar tables with "gradings off" before standard rate corporation tax applies increased from £10,000 to £15,000 and £20,000 and £25,000.

Dr. Gilbert,

pursuant to his reply [OFFICIAL REPORT, 11th July] gave the following information:

Information is not available on which to base precise estimates, but approximate figures, to the nearest £5 million, are as follows:

COST IN A FULL YEAR OF AMENDING FA 1972 S. 96(3)
million)
Lower relevant maximum amount Difference between upper and lower relevant maximum amount
£10,000 £15,000 £20,000 £25,000
£20,000 5 10 15 15
£25,000 15 15 20 20
£30,000 20 25 25 30
£35,000 25 30 30 35
£40,000 30 35 35 40
£45,000 35 40 40 45
£50,000 40 40 45 45

Mr. David Mitchell

asked the Chancellor of the Exchequer what would be the estimated cost of reducing corporation tax for small companies from 42 per cent. to 39 per cent. in conjunction with raising the level of profits to which they apply from £15,000, graded off to £25,000, to £25,000 graded off to £35,000, and to £35,000, graded off to £50,000, respectively.

Dr. Gilbert,

pursuant to his reply [OFFICIAL REPORT, 11th July] gave the following information:

Following are the figures:

Relevant maximum amount Cost in a full year
Lower Upper
£ million
£25,000 £35,000 35
£35,000 £50,000 50

Mr. David Mitchell

asked the Chancellor of the Exchequer what would be the estimated net cost to the Treasury of charging corporation tax for small companies, as defined in the 1972 Finance Act, at the rate of 41 per cent., 40 per cent., 39 per cent., and 37½ per cent., instead of 42 per cent. respectively.

Dr. Gilbert,

pursuant to his reply [OFFICIAL REPORT, 11th July] gave the following information:

Following are the figures:

Small company rate Cost in a full year
per cent. £ million
41 9
40 9
39 13
37½ 20