§ Mr. Nicholas BrownTo ask the Chancellor of the Exchequer what is the cost in 1990–91 and in a full year of reducing the small companies rate of corporation tax to 20 per cent.
§ Mr. Lilley[holding answer 9 February 1990]: Table 4.5 of the 1989 Autumn Statement shows the direct effect of a 1 percentage point change in the small companies rate is £35 million in 1990–91. The corresponding full year effect is £50 million.
Subject to the qualifications in that table, the costs associated with a 5 percentage point reduction to 20 per cent. may be expected to be broadly pro rata to the effects of a 1 percentage point change.
§ Mr. Nicholas BrownTo ask the Chancellor of the Exchequer what is the estimated cost in 1990–91 and in a full year of introducing stock relief based on the retail prices index into the corporation tax system.
§ Mr. Lilley[holding answer 9 February 1990]: Information is not available on which to base a reliable estimate of this cost.