Uncategorized March 22, 2012

Corporation tax lowered by Chancellor in 2012 budget

Chancellor George Osborne announced a 1 per cent cut in corporation tax during yesterday's annual budget meeting.

Osborne, who wants to make the UK "earn its way in the world" cites the Guardian, told the Commons the headline rate for competitive tax was a sure fire sign the UK is competitive.

The Chancellor stated, cited by Press Association: "We've already cut the rate from 28 per cent to 26 per cent. This April it is due to fall again to 25 per cent. I can announce today a further cut of 1 per cent - to be implemented right away.

"From next month, Britain will have a corporation tax rate of just 24 per cent, and we will continue with the two further cuts planned next year and the year after," he added.

This will make it easier for firms raising finance as a cut in tax allows UK businesses a bit of extra cash to play with.

Furthermore, the Chancellor stated the UK's corporation tax makes it a world leader as the US, Japan, France and Germany all have significantly higher rates - with the UK having an 18 per cent lower rate than the US.

Additional reforms include the raising of personal allowance, benefits in line with inflation and a doubling of grants to help start-ups recruit staff.

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