Five key developments in 2010 affecting the taxation of the City are as follows:
1. Reduction in corporation tax rate
The government has gone to great lengths to impart the message that ‘Britain is open for business’.
A headline component of this reform is the reduction in the main rate of corporation tax from 28% to 24% over four years.
Why it matters: The government’s professed aim in prioritising corporate tax reform is to create the most competitive corporate tax system in the G20 thereby enhancing the UK’s attractiveness to business.
A lower rate of corporation tax is an essential ingredient in that approach. Having said that one consequence of this change in rates is the reduction in the value of the deferred tax assets which many banks have recognised as a result of their past losses.
2. CFC reform
The current CFC rules have been in place...
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Five key developments in 2010 affecting the taxation of the City are as follows:
1. Reduction in corporation tax rate
The government has gone to great lengths to impart the message that ‘Britain is open for business’.
A headline component of this reform is the reduction in the main rate of corporation tax from 28% to 24% over four years.
Why it matters: The government’s professed aim in prioritising corporate tax reform is to create the most competitive corporate tax system in the G20 thereby enhancing the UK’s attractiveness to business.
A lower rate of corporation tax is an essential ingredient in that approach. Having said that one consequence of this change in rates is the reduction in the value of the deferred tax assets which many banks have recognised as a result of their past losses.
2. CFC reform
The current CFC rules have been in place...
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If you do not subscribe but are a registered user, please enter your details in the following boxes:
