Taxation (Hansard, 2 March 2004)
HC Deb 02 March 2004 vol 418 c824W
Mr. Redwood

To ask the Chancellor of the Exchequer what the cost to public funds would be of reducing corporation tax to(a) 25 per cent. and (b) 20 per cent. [157572]

Dawn Primarolo

Reductions in the main rate of corporation tax of this magnitude would be likely to have indirect as well as direct effects on tax revenues. The "Tax Ready Reckoner and Tax Reliefs published with the pre–Budget report in December showed the direct effects of a one percentage point change in the main rate of corporation tax in April 2004 as £650 million in 2004–05 and £1,300 million in 2005–06.

Mr. Redwood

To ask the Chancellor of the Exchequer what the cost to public funds would be of raising the threshold for inheritance tax to £1 million. [157575]

Dawn Primarolo

The PBR projection of inheritance tax yield is £2.8 billion for 2004–5. The full year cost of raising the inheritance tax threshold to £1 million in 2004–5 would be £2.5 billion.

GLOBAL ISLES COURT OF RECORD