HC Deb 13 April 1999 vol 329 c122W
Dr. Cable

To ask the Chancellor of the Exchequer what estimate he has made of numbers of the companies which will pay corporation tax at(a) 10 per cent. and (b) a marginal rate of 22.5 per cent. [79080]

Dawn Primarolo

Around 270,000 small and growing companies will pay less tax on profits as a result of the Chancellor's proposal to introduce a new 10 per cent. rate of corporation tax from 1 April 2000. Around 150,000 companies will pay corporation tax at 10 per cent. on profits of up to £10,000. Around 120,000 companies with profits between £10,000 and £50,000 will pay tax at an average rate of between 10 per cent. and the small companies' rate (20 per cent. from 1 April 1999) and have a lower tax bill as a result. This represents tax at 10 per cent. on the first £10,000 of profit and tax at 22.5 per cent. on the amount by which profits exceed £10,000 (with a 20 per cent. small companies' rate of corporation tax).