§ Mr. Austin Mitchellasked the Chancellor of the Exchequer whether he will publish in the Official Report his estimate of the increase in the yield of corporation tax in a full financial year from abolishing relief in respect of past losses; and if he will provide a break-down by sector.
§ Mr. Norman LamontUse of accumulated tax losses is estimated to have reduced CT receipts by some £1–2 billion in 1986–87, excluding the public sector. A breakdown by sector could only be provided at disproportionate cost.
§ Mr. Austin Mitchellasked the Chancellor of the Exchequer whether he will publish in the Official Report his estimate of the increase in the yield of corporation tax in a full financial year from disallowing interest on borrowed money as a cost; and if he will provide a breakdown by sector.
§ Mr. Norman LamontThe yield would depend upon the precise nature of the proposal: for example, whether the interest receipts of lending institutions remained taxable, 387W and whether the proposals extended to the public sector, building societies and unincorporated businessess. The proposal would induce significant behavioural changes on the part of lenders and borrowers which would also affect the yield.
Estimates of company interest payments, consolidated by sector, are available in the 1986 edition of United Kingdom National Accounts.
§ Mr. Austin Mitchellasked the Chancellor of the Exchequer whether he will publish in the Official Report his estimate of the increase in revenue from corporation tax in a full financial year from abolishing capital and depreciation allowances; and if he will provide a breakdown by sector.
§ Mr. Norman LamontEstimates of the reduction in 1986–87 corporation tax liabilities resulting from the existence of capital allowances were published in the Public Expenditure White Paper (Cm 56-II).
A breakdown by sector beyond those given in the White Paper is not readily available.