Chancellor announces corporation tax cut

News Article - 23 May 2012
Category:

Chancellor Gordon Brown has announced a cut in the principal corporation tax rate in his latest Budget, down from 30 per cent to 28 per cent as of April next year.

Following this move the UK will have the lowest corporation tax rate among all G7 nations and many firms could have extra funds for the implementation of accountancy programs and business solutions. These developments are being welcomed by many parties who highlight simplification as a key benefit.

The two per cent cut is expected to come as good news to larger businesses looking for greater competitiveness in the UK's tax regime. However Mr Brown has also announced plans to increase corporation tax for smaller companies by three per cent by 2009.

This move is designed to counter tax-motivated incorporation from self-employed workers and will see corporation tax for smaller firms rise to 22 per cent.

Michael Izza of the Institute of Chartered Accountants in England and Wales argued that more should be done sooner to help businesses.

"By failing to do something about our over-complicated tax system and with the other changes particularly for smaller businesses, the chancellor has missed an opportunity to ease the regulatory burden," he told Accountancy Magazine.

Article keywords:

---

More industry news

• Think tank warns UK may have already slipped back into recession
• Growing demand for HR staff in technology and international sectors
• Boosting business growth a ‘priority’ to avoid Eurozone slowdown
• HMRC launches alternative disputes pilot scheme this week
• December employment statistics disregard gloomy recruitment predictions
• Eurozone manufacturing PMI shows modest improvement
• UK scores highly for economic governance by ratings agency
• Government launches two-year project focusing on manufacturing sector
• Burden of regulation on UK businesses ‘too high’

Back to news home page »