§ Mr. Loveridgeasked the Chancellor of the Exchequer if he will estimate the extra annual amount of taxation that smaller businesses will have to pay under the new system of corporation tax compared with the old system in spite of the relief given by the 40 per cent. rate for the past, and the proposed 42 per cent. rate in the future.
§ Dr. GilbertI am afraid that there is no information available which makes possible a useful estimate of how much more tax will be payable by small companies—that is, companies qualifying for relief under Section 95 of the Finance Act 1972—under my right hon. Friend's Budget proposals than would have been payable if the system in force before April 1973 had continued. However, small companies as a group, considered together with their shareholders, would have borne less tax with the 40 per cent. illustrative: 599W rate than they would have done under the old system, and it is unlikely that, as a group, even with a rate of 42 per cent. they will pay more.