§ Mr. Pardoeasked the Chancellor of the Exchequer if he will estimate how many companies will be eligible in 1976–77 to pay the small companies rate of tax.
§ Mr. Robert SheldonIt is not yet possible to provide any precise estimate of the number of companies paying corporation tax at the small companies rate, since sufficient information is not yet available concerning the impact of stock relief on the distribution of companies by size of taxable income, but it is thought that over 95 per cent. of all companies will either have no liability in 1976–77 or be eligible for the small companies rate or marginal small company relief.
§ Mr. Pardoeasked the Chancellor of the Exchequer if he will give details and the dates of all changes in the percentage rates of corporation tax for small companies since the inception of the tax.
§ Mr. Robert SheldonThere has been no change in the small companies rate of corporation tax since it was first fixed at 42 per cent. for the financial year 1973, on the introduction of the imputation system. Under the earlier "classical"56W system a single rate applied to all companies.
§ Mr. Pardoeasked the Chancellor of the Exchequer if he will give the total revenue from the small company rate of corporation tax for each year since its inception and estimate it for 1976–77.
§ Mr. Robert SheldonI regret that it is not yet possible to provide estimates showing the movement over time of the revenue from small companies, because there is not yet sufficient information concerning the impact of stock relief on the distribution of companies by size of taxable income. However, it is estimated that in 1976–77 receipts of corporation tax from companies paying at the small companies rate will be about £250 million. If companies eligible for marginal relief are included the estimated receipts are about £400 million.