§ Mr. Austin MitchellTo ask the Chancellor of the Exchequer whether he will bring up to date the figures for receipts of corporation tax given in his written reply dated 6 April 1987,Official Report, column 83, together with a forecast in each case for (a) receipts in 1988–89 and (b) the liability to tax arising out of profits earned in 1988; and if he will include an estimate of the revenue yield under (a) and (b) from an increase in the rate to 50 per cent.
§ Mr. Norman LamontThe latest available estimates are as follows:
Receipts of Corporation Tax (CT) £ million All companies and financial institutions1 North Sea Total CT Of which ACT CT of which satisfied by setting off ACT2 1985–86 10,708 3,794 2,911 1,080 1986–87 13,495 4,455 2,676 1,130 1987–88 15,734 4,939 1,355 730 31988–89 19,700 5,800 1,400 800 1 Including North sea companies. 2 Liability to corporation tax arising in respect of North sea production may be satisfied by setting off ACT arising on dividends paid in previous periods in respect of both onshore and offshore activities. Dividends and ACT associated with North sea activities alone cannot be identified. 3 Forecast. Reliable estimates of liability to tax in 1988 are not yet available. Estimates of the revenue effect of changes in the main corporation tax rate for all companies and financial institutions are provided each year in table 4.5 of the autumn statement.