asked the Chancellor of the Exchequer if the majority of the largest 20 companies in the United Kingdom pay corporation tax in real terms.
, pursuant to his reply [Official Report, 30 January 1979], gave the following information:For reasons of confidentiality I cannot discuss the tax affairs of a small group of companies. All companies pay corporation tax on profits calculated according to historic costs. To the extent that they qualify for stock relief or make investments qualifying for 100 per cent. first year allowances, and claim these reliefs, relief may in effect be given against the effects of inflation in these cases.