§ Mr. Colvinasked the Chancellor of the Exchequer when he expects to be able to forecast the receipts to the Exchequer from the reduced rate of corporation tax in the year 1986–87 and in subsequent years; and if he will make a statement.
§ Mr. MooreA forecast of corporation tax receipts in 1986–87 will be provided in the Financial Statement and Budget report for that year.
The precise level of corporation tax receipts in 1986–87 and subsequent years will depend on the level of profits and investment in the future. But, as my right hon. Friend announced in his Budget speech, companies will enjoy substantial reductions in taxation when the changes have fully worked through. The Budget measures hold out an exciting prospect for business. Success will no longer be penalised. Instead, the more even-handed tax regime will encourage efficiency and reward enterprise and will contribute to better employment prospects.