The chancellor has announced a further reduction in the main rate of corporation tax. The rate will be 21% from April 2014.
Stella Amiss, corporate tax partner at PwC, said: ‘All in all this was a solid and measured statement for British business … [The further 1% rate reduction] sets the UK apart on the global landscape and ensures the UK is competitive.
‘The chancellor has listened to business in producing a statement that delivers stability. The chancellor has not gone back on the corporate tax reform measures announced in recent Budgets and there was no change to rules affecting interest deductibility or availability of loss relief. This underlines the government's drive to deliver on the policy of Britain being open for business.’
The government has already reduced the tax rate from 28% to 24% and announced further reductions, to 22% in 2014.
‘This means the rate will be reduced from 24% to 23% in April 2013 [as already announced] and then to 21% in April 2014, when the UK will have the lowest corporation tax rate in the G7 and the fourth lowest in the G20,’ HM Treasury said.
David Gauke, the exchequer secretary, said at a conference earlier this year that by April 2014 the main rate would be ‘within touching distance of 20%’.
The chancellor has announced a further reduction in the main rate of corporation tax. The rate will be 21% from April 2014.
Stella Amiss, corporate tax partner at PwC, said: ‘All in all this was a solid and measured statement for British business … [The further 1% rate reduction] sets the UK apart on the global landscape and ensures the UK is competitive.
‘The chancellor has listened to business in producing a statement that delivers stability. The chancellor has not gone back on the corporate tax reform measures announced in recent Budgets and there was no change to rules affecting interest deductibility or availability of loss relief. This underlines the government's drive to deliver on the policy of Britain being open for business.’
The government has already reduced the tax rate from 28% to 24% and announced further reductions, to 22% in 2014.
‘This means the rate will be reduced from 24% to 23% in April 2013 [as already announced] and then to 21% in April 2014, when the UK will have the lowest corporation tax rate in the G7 and the fourth lowest in the G20,’ HM Treasury said.
David Gauke, the exchequer secretary, said at a conference earlier this year that by April 2014 the main rate would be ‘within touching distance of 20%’.
