HC Deb 26 February 1991 vol 186 cc438-9W
Mr. John Marshall

To ask the Chancellor of the exchequer what corporation tax had been payable by(a) BT plc, (b) Cable and Wireless plc and (c) British Steel plc since they were privatised.

Mr. Maude

Details of the tax affairs of identified taxpayers are confidential and may not be revealed without the express permission of those concerned.

Mr. Nicholas Brown

To ask the Chancellor of the Exchequer what is the cost in 1991–92 and in a full year of reducing the small companies rate of corporation tax to 20 per cent.

Mr. Maude

[holding answer 25 February 1991]: Table 4.5 of the 1990 autumn statement shows the direct effect of a 1 percentage point change in the small companies rate is £35 million in 1991–92. The corresponding full-year effect is £55 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 Brown

To ask the Chancellor of the Exchequer what is the cost in 1991–92 and in a full year of raising the lower limit for the reduced rate for corporation tax from £200,000 to(a) £250,000 and (b) £300,000; and how many firms would be affected in each case.

Mr. Maude

[holding answer 25 February 1991]: The costs would be as follows:

Lower limit of marginal relief 1991–92 Full year
£ £ million £ million
250,000 20 30
300,000 35 50

The figures assume company incomes at 1990–91 levels, that the upper limit for marginal relief remained at £1 million and that the change took effect from 1 April 1990. In each case about 30,000 companies would be affected.

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