HC Deb 21 March 1983 vol 39 cc319-21W
Mr. Austin Mitchell

asked the Chancellor of the Exchequer whether he will bring up-to-date the information given in his replies of 8 March 1982. Official

Companies
£ millions
Gross trading profits† Capital allowances claimed‡ Stock relief claimed║ Interest payments
All Companies*
1970 6,088 2,525 — 1,752
1971 7,017 3,724 — 1,877
1972 8.162 4,638 — 2,145
1973 10,471 5,527 2,500 3,229
1974 11,628 6,689 4,000 4,272

Range of total income (lower limit) (a) (b) (c)
£ Single people Married couples without wife's earned income Married couples with wife's earned income
9,000 25 115 85
10,000 30 115 145
12,000 25 95 215
15,000 20 90 190
20,000 15 65 120
30,000 5 45 50
300 880 970

I regret that a computer programming error has just been discovered which led to errors in a few of the figures in two answers I have recently given to the hon. Member containing information ranged by total income—the reply mentioned above of 7 March on mortgage interest relief and the reply of 31 January on numbers of incomes and average rates of income tax. The corrected figures are as follows:

Report, c. 297, and 25 March 1982. Official Report, c. 399, in reply to the hon. Member for Grimsby concerning trading profits and relief from tax.

Mr. Ridley

Revised estimates since 1970 are as follows:

Gross trading profits† Capital allowances claimed‡ Stock relief claimed║ Interest payments¶
1975 12,133 8,219 2,100 4,566
1976 15,218 9,280 4,800 4,999
1977 20,521 11,349 5,400 5,277
1978 23,257 13,352 6,400 5,456
1979 28,893 15,161 9,800 8,253
1980 27,708 15,655 8,000 12,513
1981 27,553 16,424 4,500 12,418
(a) Manufacturing Companies
1970 3,956 1,234 — 500
1971 4,335 1,915 — 400
1972 5,143 2,328 — 500
1973 6,572 2,621 1,500 1,100
1974 7,750 2,998 2,700 1,700
1975 7,736 3,392 1,100 1,700
1976 9,663 3,466 2,500 1,900
1977 11,859 4,131 2,400 1,800
1978 13,007 4,832 2,700 2,100
1979 14,328 5,687 4,000 3,100
1980 13,052 5,579 3,500 4,500
1981 11,733 5,061 2,000 4,400
(b) Financial Institutions*
1970 -516 2,898 201 1,300
1971 -490 3,174 259 1,400
1972 -695 3,887 407 1,700
1973 -815 6,029 406 3,000
1974 -1,545 8,053 373 4,200
1975 -1,320 8,280 490 4,400
1976 -1,661 10,161 610 5,000
1977 -1,736 10,921 1,059 5,000
1978 -2,802 11,868 1,251 5,400
1979 -2,560 16,009 1,297 8,600
1980 -4,237 22,512 1,077 13,500
1981 -6,580 25,552 1,217 13,500

Unicorporated Business▀
All: Of which: in manufacturing
Gross trading profits* Capital allowances allowed‡ Stock relief allowed║ Gross trading profits Capital allowances allowed‡ Stock relief allowed║
1970 3,100 330 — 200 20 —
1971 3,800 400 — 230 30 —
1972 4,600 510 — 280 40 —
1973 5,400 600 — 340 40 —
1974 5,700 710 60 370 50 10
1975 6,400 860 70 410 60 10
1976 7,400 1,000 120 460 60 15
1977 8,600 1,100 220 570 80 20
1978 10,300 1,400 270 720 100 20
1979 12,500 1,600 430 880 120 35
1980 13,800 1,700 340 870 130 15
1981 14,700 1,800 270 860 130 5
General: The national accounts estimates are subject to revision as more historical information becomes available, particularly the estimates for recent years.
* Industrial and commercial, and financial.
† As defined for the national accounts and published in the National Income and Expenditure Blue Book. The profits figures are before providing for depreciation and stock appreciation and are net of trading losses. In accordance with the national accounts definitions, the profits figures for manufacturing and other industrial and commercial companies included in the "all companies" total are measured before deducting interest payments, whilst those for financial companies exclude net interest receipts. They therefore differ from income from trading as recorded for tax purposes, particularly for financial institutions. The non-trading income of financial companies is therefore shown separately in the tables.
‡ Net of balancing charges: in the case of companies, capital allowances set against profits in the same year are lower.
║ Net of stock relief withdrawn: in the case of companies, stock relief set against profits in the same year is lower.
¶ Consolidated for each subsector, ie excluding payments between companies or institutions in the same subsector. The estimates (which are not available from tax data) have been derived by applying appropriate rates of interest to the estimated average level of advances or deposits. They are therefore very tentative.
• Financial institutions claim relatively small amounts of stock relief.
▀ Figures of loan etc. interest paid in respect of the trade or profession are not available centrally.
* As assessed to income tax under schedule D cases I and II. Income from non-trading activities, which is also assessed to tax, is excluded.