asked the Chancellor of the Exchequer what he estimates the yield of corporation tax would be for 1975–76 if the rates were reduced to 45 per cent., 40 per cent. and 35 per cent.
The yield of corporation tax in 1975–76 if the rate on profits arising in 1974–75 was reduced to 45 per cent., 40 per cent. and 35 per cent. respectively is estimated at £2,020 million, £1,950 milion and £1,880 million on the basis of the Budget estimate.It has been assumed that the small companies rate remains 10 percentage points below the ordinary rate and that the consequential marginal relief also remains undisturbed.The estimates do not take into account any increase in payments of advance corporation tax which might result from consequential changes in companies' dividend payments.