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Chancellor suggests a further cut could help investment in the UK after the EU referendum result.
George Osborne has pledged to cut corporation tax to encourage investment in the UK in response to the referendum result. In an interview with the Financial Times, the chancellor said he would reduce the rate to below 15%.
Laurence Field, head of corporate tax at Crowe Clark Whitehill, said: ‘Although headline grabbing, corporation tax is increasingly unimportant to the Treasury, representing less than 10% of all the tax collected. Given the relatively limited costs and the plans the government has to increase the tax yield – through controlling interest deductions – it is quite an easy promise to make.
‘If the chancellor were to focus on simplifying and modernising the tax system, this would provide greater certainty to new investors as well as making the UK a much easier place in which to do business.’
