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Corporation tax still too high

The CBI has welcomed the Government’s pledge to introduce a phased reduction in corporation tax to just 24 per cent but wants to see more done to ease the tax burden on businesses, large and small.

In its submission to the Government’s consultation document – Corporate Tax Reform – the employers’ group said that the reduction in the main corporate tax rate was a good move. However, the CBI also insisted that the Government should eventually go further, once the public finances have been stabilised. To make the UK truly competitive, the rate should fall below 24 per cent at some future stage.

The CBI gave its backing to the proposed introduction of the Patent Box which will complement the existing R&D tax credit scheme by making the UK a more attractive home for holding and exploiting intellectual property.

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