Drop corporate tax rate to 10%, say Conservative MPs

by Calum Fuller

More from this author

24 May 2013

  • Comments
Houses of Parliament London

THE CORPORATE TAX RATE should be dropped to 10%, with much of the tax code re-written in order to compel foreign businesses to contribute the same amount as UK companies, according to the Free Enterprise Group of Conservative MPs.

In a report published today, the influential group of 40 senior Conservatives headed by Charlie Elphicke calls for a simpler tax system which would have a chilling effect on "foreign-based multinationals" which "avoid UK taxes on an industrial scale".

Slashing the corporate tax rate to 10% would increase the UK's competitiveness, and would be paid for through abolishing tax reliefs and "international avoidance structuring".

Such a system would be "internet-ready" and would "make tax avoidance as difficult and unattractive as possible".

"Such a change would be radical yet it would make the UK one of the lowest tax jurisdictions in the World with a loophole free system fit for the internet age," the report adds.

Several well-known multinationals including Google, Starbucks and Amazon have been heavily criticised for their tax affairs, with the Public Accounts Committee describing their practices as "immoral", and in particular branding Google "evil" only last week.

Avoidance of this kind "is damaging to the overwhelming majority of UK-based businesses that cannot avoid taxes in the way foreign based enterprises are able to", the group said, adding that with one of the most complex tax codes in the world, enacting its suggested changes would see all businesses "treated the same".

"Tax avoidance would still be possible, yet it would be more limited than at present", the group said.

Visitor comments

blog comments powered by Disqus

Add your comment

We won't publish your address

By submitting a comment you agree to abide by our Terms & Conditions

Your comment will be moderated before publication


Charterhouse Accountants

Finance Officer

Charterhouse Accountants, Beaconsfield, Permanent, Full Time, £ Competitive




Get the latest financial news sent directly to your inbox

  • Best Practice
  • Business
  • Daily Newsletter
  • Essentials


Search for jobs
Click to search our database of all the latest accountancy roles

Create a profile
Click to set up your profile and let the best recruiters find you

Jobs by email
Sign up to receive regular updates with the latest roles suitable for you



Why budgeting fails: One management system is not enough

If budgeting is to have any value at all, it needs a radical overhaul. In today's dynamic marketplace, budgeting can no longer serve as a company's only management system; it must integrate with and support dedicated strategy management systems, process improvement systems, and the like. In this paper, Professor Peter Horvath and Dr Ralf Sauter present what's wrong with the current approach to budgeting and how to fix it.


iXBRL: Taking stock. Looking forward

In this white paper CCH provide checklists to help accountants and finance professionals both in practice and in business examine these issues and make plans. Also includes a case study of a large commercial organisation working through the first year of mandatory iXBRL filing.