§ Dr. McDonald
asked the Chancellor of the Exchequer what is his estimate of the revenue which would be raised by each 1 per cent. of a tax levied on bank profits.
§ Mr. Peter Rees
[pursuant to his reply, 15 January 1981, c. 627.]: The yield of any increase in the rate of tax on the profits of banks—now 52 per cent.—would depend on the level of their taxable profits at the time. If the rate had been 1 percentage point higher their additional tax payments in 1980–81 would have been roughly £10 million. This estimate covers United Kingdom banks—including discount houses—and licensed deposit takers and United Kingdom branches of overseas banks.