§ Mr. David ShawTo ask the Chancellor of the Exchequer what studies his Department has carried out of the impact of corporation tax on smaller businesses and the survival rate of small companies.
§ Mr. MaudeThe impact of corporation tax on small companies is kept under regular review. The profits limit for the small companies relief has been doubled in the last two years so that 40,000 more companies now pay tax at 25 per cent.—the small companies rate of corporation tax. And we have reduced the small companies rate itself from 42 per cent. to its present level of 25 per cent.