§ Mr. Mike O'BrienTo ask the Chancellor of the Exchequer to what extent the costs have exceeded projections in respect of extending the period over which trading losses could be carried back to set against corporation tax liabilities from one year to three years; and what impact this has had on Government revenues. [8311]
§ Mr. JackThe "Financial Statement and Budget Report 1991-92" estimated the net cost of extending loss carry back for companies from one year to three years as £250 million in 1992–93.
However, the net cost cannot be measured precisely. Repayments of corporation tax in 1992–93 are estimated to include £350 million from the extension of loss carry hack to three years, but the consequent changes to group relief surrendered and losses carried forward, which would reduce the cost, cannot be measured.