HC Deb 30 March 1984 vol 57 c307W
Mr. Austin Mitchell

asked the Chancellor of the Exchequer what is the carry over of losses and allowances in the current financial year for the purposes of corporation tax; by how much these are likely to be reduced in the current year; and how much he expects to be extinguished against profit in each of the next four years over and above the new system of allowances.

Mr. Moore

The estimates of cumulative tax losses carried forward have been updated and revised; the total is now put at about £25 billion, excluding the public sector. This estimate remains extremely tentative.

I regret that it is not possible to estimate with sufficient reliability the extent of changes to this total in any one year. The measures proposed by my right hon. Friend should contribute significantly towards reducing the overhang of losses. The precise extent of this reduction will depend on a number of factors, including the levels of profits and investment over the next four years.

Mr. Austin Mitchell

asked the Chancellor of the Exchequer whether he will publish in the Official Report a table showing the incidence of corporation tax on a typical large company in (i) manufacturing, (ii) chain store retailing and (iii) financial services other than leasing assuming that investment and profits remain at their present level and that allowances carried forward from the current year are typical of the sector in question.

Mr. Moore

I regret that it is not possible to provide estimates for a typical company. The corporate sector is so diverse that, even within particular sectors, there is a great variation in factors affecting the incidence of corporation tax, including not only the level of profits and investment but also factors such as the type and size of assets and stocks, the rate of return on these assets, the way assets are financed, sources of income, the extent to which profits are distributed or retained, and company group relationships. All these, for both the current and previous years, contribute, in addition, to great diversity in the level of unused allowances.