§ Mr. Wigleyasked the Secretary of State for Trade what steps he proposes taking to encourage limited companies to share their profits with their employees.
§ Mr. Peter ReesI have been asked to reply.
Amounts paid by a company to its employees by way of bonus under a profit sharing arrangement will normally qualify as a deduction for corporation tax purposes in the same way as the payment of wages. The present Finance Bill contains proposals to improve the income tax reliefs, available to employees who participate in schemes approved by the Revenue under the Finance Act 1978.