§ Mr. GibbTo ask the Chancellor of the Exchequer what assessment his Department made of the likely changes to the capital structure of companies arising as a result of the abolition of repayable tax credits on dividends received by pension funds and from the abolition of advance corporation tax prior to these changes being introduced. [22893]
§ Mr. Geoffrey RobinsonThe capital structure of companies depends on many factors. The changes in company taxation announced in the July 1997 Budget and the proposals made in the Pre-Budget report in November are unlikely to have a significant impact in the short term. Longer term effects are expected to reflect the benefits to the economy and to companies of deciding their capital structure under a more neutral tax system.
§ Mr. GibbTo ask the Chancellor of the Exchequer what is his Department's estimate of the corporation tax revenue consequences arising from the change to the capital structure of companies resulting from the abolition of repayable tax credits on dividends received by pension funds and from the abolition of advance corporation tax. [22889]
§ Mr. Geoffrey RobinsonThe current view remains that any change in capital structure would not significantly affect the published estimates of corporation tax revenues.
§ Mr. GibbTo ask the Chancellor of the Exchequer what estimate his Department made of the corporation tax revenue consequences arising from the change to the capital structure of companies resulting from the abolition of repayable tax credits on dividends received by pension funds and from the abolition of advance corporation tax at the time of making these changes. [22890]
§ Mr. Geoffrey RobinsonAny change in capital structure would not significantly affect the published estimates of corporation tax revenues.