§ Mr. MacleanTo ask the Chancellor of the Exchequer what estimate he has made of the number of businesses which will be affected by the introduction of quarterly payments of corporation tax; and what will be the average cost per business. [70652]
§ Dawn Primarolo[holding answer 15 February 1999]The introduction of quarterly payments of corporation tax will affect some 20,000 companies. This measure was part of a package of measures introduced in the 1998 Budget which included the abolition of Advanced Corporation Tax (ACT) and a 1 per cent. cut in the main rate of corporation tax from April 1999. After a four year transition period, the effect for these companies of introducing quarterly payments, abolishing ACT and the 1 per cent. rate cut is likely on average to be a reduction in liability.