HC Deb 03 November 1993 vol 231 cc260-1W
Mr. Andrew Smith

To ask the Chancellor of the Exchequer what was the take-up of the increased capital allowances against corporation tax announced in the 1992 "Autumn Statement" for the most recent periods for which statistics are available; what was (a) the estimated cost and (b) the actual cost for the period; what is his latest estimate of the full year cost of the scheme and what was the cost budgeted; and what is his estimate of the difference between the cost of the enhanced allowances regime and that of the allowances it replaced, on the assumption that those had applied in the current year.

Mr. Dorrell

[holding answer 1 November 1993]: Available estimates of the direct revenue effects of enhanced capital allowances announced in the 1992 "Autumn Statement" are as follows. The figures cover both companies and unincorporated businesses.

£ million (yield +ve/cost-ve)
1993–94 1994–95 1995–96
Latest estimates -200 -700 +50
Original estimates -200 -500 +50

The original estimates were published in the "Autumn Statement" 1992 and in table 4B.1 of the "Financial Statement and Budget Report" 1993–94. The latest estimates are provisional and mainly reflect increased estimates of the levels of profitability. Information is not yet available from tax assessments for the relevant period.

The accrual costs of all capital allowances are given in table 1.6 and appendix B1 of "Inland Revenue Statistics 1993".

Mr. Betts

To ask the Chancellor of the Exchequer if he will list the various reliefs and exemptions on corporation tax; and what will be the cost of each to the Exchequer(a) in 1993–94 and (b) in 1994–95 if unchanged.

Mr. Dorrell

[holding answer 2 November 1993]: Costs to the Exchequer in 1993–94 and 1994–95 of tax expenditures and structural reliefs will largely depend on costs accruing for 1992–93 and 1993–94 respectively, because corporation tax is payable nine months after the end of a company's accounting period.

Estimated costs accruing for 1992–93 and 1993–94 are published in table 1.6 and appendices B1 and B2 of "Inland Revenue Statistics 1993".

Where the costs of the main reliefs include both income tax and corporation tax, the amounts for corporation tax are as follows:

£ million
1992–93 1993–94
Capital Allowances 11,750 13,150
Double Taxation Relief 2,300 2,300