§ Mr. AspinwallTo ask the Chancellor of the Exchequer what the Treasury definition of a small business is for tax purposes.
§ Mr. Norman Lamont[holding answer 15 June 1989]: There is no specific definition. Targeting of tax reliefs for small businesses is achieved by defining the relevant qualifying conditions, taking account of the particular objective. For example, to benefit from the small companies' rate of corporation tax, a company must have profits below £100,000 or, for the purposes of the marginal relief, below £500,000. The Finance Bill contains provisions to increase these limits to £150,000 and £750,000 respectively.