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Corporation Tax

Volume 487: debated on Wednesday 28 January 2009

To ask the Chancellor of the Exchequer (1) what estimate he has made of the full-year cost to the Exchequer for (a) 2009-10, (b) 2010-11 and (c) 2011-12 of reducing the main corporation tax rate to 25 per cent.; (251190)

(2) what estimate he has made of the full-year cost to the Exchequer for (a) 2009-10, (b) 2010-11 and (c) 2011-12 of reducing the small companies rate of corporation tax to 20 per cent.

The direct revenue effects of a one percentage point change in both the small companies’ rate and the main rate of corporation tax are shown in table 5 of “Tax Ready Reckoner and Tax Reliefs November 2008”.

http://www.hm-treasury.gov.uk/d/pbr08_taxreadyreckoner_287.pdf

These estimates will be updated at Budget 2009.