Corporation Tax (Hansard, 18 January 1988)

§ Mr. Neil Hamilton
To ask the Chancellor of the Exchequer if he will estimate the cost of extending the 27 per cent. small companies rate of corporation tax to the first £100,000 of profits of every company or, as the case may be, group, so that on no profits does the marginal tax rate exceed the 35 per cent. standard rate.

§ Mr. Norman Lamont
Of the order of £70 million at the rates due for the 1987–88 financial year.

§ Mr. Neil Hamilton
To ask the Chancellor of the Exchequer, with respect to the small companies rate of corporation tax(a) when the £100,000 lower limit and £500,000 upper limit for marginal relief were last changed, (b) what the respective limits would be for 1988–89, on present forecasts of inflation, if they were indexed for inflation since the date they were last changed, and (c) what would be the cost of increasing the limits to those figures.
468W
education at maintained secondary schools and further education establishments in the academic year 1986–87 in each specified local education authority and in England are given below. Pupils in independent schools have been excluded from the answer. Information for Wales is the responsibility of my right hon. Friend the Secretary of State for Wales.

§ Mr. Norman Lamont
The limits were last changed in 1983 — in respect of the financial year 1982–83. If indexed in line with changes in the RPI, they would become approximately £130,000 and £650,000 for 1988–89. The cost of indexation would be approximately £75 million in a full year at current levels of company income.