Osborne set to cut corporation tax

Chancellor George Osborne is planning to reduce corporation tax to 20% in the upcoming Budget, the Sunday Times reports.
By: HW FISHER
 
July 24, 2012 - PRLog -- The newspaper quotes treasury insiders who confirm Osborne's determination to prioritise business in the Budget and respond to pressure to undertake populist tax reforms. It is also expected that he will reveal details of plans for improving infrastructure and will also pay attention to warnings from industry representatives not to withdraw pension tax relief.

The Government's plan for reforms in the credit system will also be unveiled, with Whitehall already having agreed with the majority of banks over lending to small businesses, ensuring they get better access to capital and lower costs of loans. It has been announced that the scheme is ready to come into effect immediately after the Budget.

This is not the first time that the treasury has reduced corporation tax. When Osborne took office the tax rate was 28% but it was lowered to its current level of 25%. It is set to reach 23% during this Parliament. The Sunday Times reports that a 20% corporation tax is much lower that in other leading economies. For instance, there is a base rate of 35% in the US, while France charges 33.3%. Although the base rate in Germany is fixed at 15%, the tax reaches over 30% when additional social taxes are added. However, Ireland, which has established a reputation of a tax heaven for businesses, charges 12.5%.

Find out more at http://www.hwfisher.co.uk/corporate-tax
End
Source:HW FISHER
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