Corporation Tax (Hansard, 14 March 1985)

§ Mr. Fisher
asked the Chancellor of the Exchequer how many companies have paid corporation tax of over (a) £100,000, (b) £500,000, (c) £1 million and (d) £5 million in each of the last five fiscal years.

§ Mr. Moore
[pursuant to his reply, 25 February 1985, c. 58]: Broad estimates for the most recent year for which figures are available are:

(a) 5,000

(b) 1,300

(c) 700

(d) over 100

These estimates are very tentative, and I regret that figures for each of the last five years could only be obtained at disproportionate cost.

§ Mr. Fisher
asked the Chancellor of the Exchequer what percentage of (a) gross trading profits and (b) net trading profits was paid by all industries in corporation tax for each of the last 10 years.

§ Mr. Moore
[pursuant to his reply, 25 February 1985, c. 58]: The percentages are as follows:

Gross trading profits Net trading profits

1975–76 16 32

1976–77 20 50

1977–78 20 42

1978–79 17 33

1979–80 18 38

1980–81 16 33

1981–82 17 41

1982–83 19 46

1983–84 18 42

1984–85 20 35

Gross trading profits are net of losses and are based upon national accounts estimates but after adjustment for net interest flow. For North Sea companies oil tax accruals 259W (royalty PRT and SPD) have been deducted. Net trading profits are gross trading profits less capital allowances claimed, not all of which can be set against profits in the same year; the allowances claimed usually exceed commercial depreciation. Corporation tax receipts in each financial year have been expressed as a percentage of profits in the previous calendar year.

§ Mr. Fisher
asked the Chancellor of the Exchequer (1) what percentage of net trading profits was paid in corporation tax by (a) agriculture, (b) energy and water supply, (c) extraction and chemicals, (d) metal goods and engineering and (e) other manufacturing industries in the last fiscal year for which statistics are available;
(2) what percentage of net trading profits was paid in corporation tax by (a) construction, (b) distribution and repairs, (c) hotels and catering, (d) transport and communications, (e) banking, finance and insurance, (f) business services, (g) other services and (h) overseas industries in the last fiscal year for which statistics are available.

§ Mr. Moore
[pursuant to his replies, 25 February 1985, c. 58]: The most recent reasonably reliable estimates related to profits arising in 1980; and can be disaggregated only for the following sectors:

Corporation tax receipts in 1981–82 as a percentage^* of net trading profits† in 1980 (private sector only)

per cent.

Manufacturing 45

Distribution and repairs, hotels and catering 50

Banking, finance and insurance 50

North sea companies‡ 25

Other industrial and commercial companies 50

^* These percentages have been affected by transfers of losses across years and across sectors and by ACT payments covering more than one sector.

† Gross trading profits as recorded for tax purposes, ie after deduction of short term interest (except for North Sea companies—see ‡), less capital depreciation allowances.

‡ Corporation tax charge, before set off of advance corporation tax, as a proportion of net trading profits gross of interest payments, net of petroleum revenue tax and royalties. The total tax charge, including petroleum revenue tax and royalties, amounted to 65 per cent. of net trading profits, gross of interest payments, in 1980.

	Gross trading profits	Net trading profits
1975–76	16	32
1976–77	20	50
1977–78	20	42
1978–79	17	33
1979–80	18	38
1980–81	16	33
1981–82	17	41
1982–83	19	46
1983–84	18	42
1984–85	20	35

Corporation tax receipts in 1981–82 as a percentage^* of net trading profits† in 1980 (private sector only)
	per cent.
Manufacturing	45
Distribution and repairs, hotels and catering	50
Banking, finance and insurance	50
North sea companies‡	25
Other industrial and commercial companies	50
^* These percentages have been affected by transfers of losses across years and across sectors and by ACT payments covering more than one sector.
† Gross trading profits as recorded for tax purposes, ie after deduction of short term interest (except for North Sea companies—see ‡), less capital depreciation allowances.
‡ Corporation tax charge, before set off of advance corporation tax, as a proportion of net trading profits gross of interest payments, net of petroleum revenue tax and royalties. The total tax charge, including petroleum revenue tax and royalties, amounted to 65 per cent. of net trading profits, gross of interest payments, in 1980.