To ask the Chancellor of the Exchequer what was the total tax revenue raised in the last financial year from companies under the small companies rate (a) on profits below £100,000 and (b) on profits between £100,000 and £500,000; and, in the latter case, what was the average rate.
The corporation tax revenue raised under the small companies' rate in 1985–86 (the latest year for which adequate detailed data are available) is estimated at£¾ billion on taxable profits below £100,000 and £¼ billion on taxable profits between £100,000 and £500,000. The average rate for the latter group is 35 per cent.
To ask the Chancellor of the Exchequer if he will estimate the cost of (a) increasing the inheritance tax business property relief to 100 per cent. arid (b) extending the relief to holdings in excess of 10 per cent.
(a) The cost of increasing the inheritance tax business relief to 100 per cent. is estimated at £20 million in the full year.
(b) The cost of extending the present 50 per cent. relief to unquoted company shareholdings in excess of 10 per cent. is estimated at £1 million in the full year.