Coalition agreement: Corporation tax
The coalition agreement did not mention corporation tax which the Conservatives had pledged to reduce. Baker Tilley observed that the Liberal Democrats were unlikely to support 'any move to making the UK internationally competitive (for example as a more attractive holding company location)'.
While the Conservatives' manifesto offered a simplification of the controlled foreign companies rules and consultation on moving towards a territorial system that only taxes profits generated in the UK the Liberal Democrats had pledged to crack down on tax havens which 'allow corporations to avoid paying taxes to developing countries'.