Corporation Tax

To ask the Chancellor of the Exchequer if he will estimate the revenue which would be raised by treating all capital gains accruing to companies as income and taxing them at the appropriate corporate tax rate in 2009-10. (300725)

No additional revenues would be raised. Companies capital gains are charged to corporation tax as part of their total profits, at the same rate as any income profits. Consequently companies’ chargeable gains are already taxed at the relevant rate of corporation tax for 2009-10. It is highly probable that there would be a fall in net receipts once account is taken of any accumulated capital losses which are currently only given relief against future capital gains, rather than income.