asked the Minister for Finance the estimated cost to the Exchequer of the allowances or relief specified in Parliamentary Question No. 42 of 10 March, 1988 for the years 1987-88 and the estimated cost for 1988-89.
Written Answers. - Exchequer Costs.
51.
The following table sets out the information requested in so far as it is available in respect of 1987-88. It is not possible at this stage to give any breakdown in respect of 1988-89.
Estimated cost to the Exchequer
|
Allowance or Relief |
£m |
|
(Provisional) |
|
|
1987/1988 |
|
|
Manufacturing profits — reduced rate of tax*¹ |
131 |
|
(1987) |
|
|
Stock relief*² |
0.7 |
|
(1987) |
|
|
Reduced rate of corporation tax for small companies* |
9 |
|
(1987) |
|
|
“Section 84” loans³ |
60 |
|
(1987) |
*These estimates are very tentative and are subject to a wide margin of error.
¹Manufacturing profits
This figure represents the estimated loss to the Exchequer arising from the charging of manufacturing and other qualifying profits at reduced rates of corporation tax instead of at normal rates.
²Stock relief
Stock relief was not renewed in 1987 or 1988 for any sector other than farming.
³"Section 84" loans
This figure includes preference share financing which is a minor element in the total. The £60 million is a gross figure and does not take account of the yield from the levy on section 84 loan interest which was introduced in 1986. This levy yielded £14 million in 1987.