§ Mr. Pardoeasked the Chancellor of the Exchequer if he will list all the capital allowances against corporation tax and estimate the loss of revenue which will occur in 1976–77 as a result of each.
§ Mr. Denzil DaviesThe estimated amounts of allowances due to companies 225W for accounting periods ended in 1975–76, which would normally affect corporation tax receipts in 1976–77, are shown in the table below:
Type of Allowance Allowance due for 1975–76 £ million 100 per cent. first year allowances 4,610 Writing-down and balancing allowances; 755 Industrial Buildings allowance 440 Miscellaneous allowances 45 Total 5,850 The corporation tax equivalent of this total, assuming a rate of 52 per cent. is £3,040 million. However, I would not think it meaningful to describe this figure as representing the loss of revenue resulting from the allowances, since any system of computing chargeable profits would have to take acount in some way of the wastage of capital incurred in earning those profits.