Cameron signals corporation tax cuts

Cameron signals corporation tax cuts

Tory leader signals he will cut corporation tax if his party wins the next election

David Cameron, leader of the
Conservatives,
has indicated that he will scrap corporation tax if his party wins the next
election, but added that he would fund the move by abolishing a range of reliefs
and exemptions for business.

Cameron’s comments followed the release of a 200-page report by the
Conservatives’ Tax Reform Commission. The Commission, led by Lord Forsyth,
argued that corporation tax should be cut from 30% to 25%. The Tories would make
up for the loss of revenue by scrapping R&D tax credits and film tax
credits, and broadening the tax base.

At Forum for Private Business event in London, Cameron said removing
exemptions and broadening the tax base would simplify the tax system and reduce
headline rates, the FT reports.

Economic secretary to the Treasury, Ed Balls, however, said the report by the
Tories listed £21bn of tax cuts that were unaffordable and would blow a whole in
the public finances.

Cameron’s comments came on the same day that chancellor Gordon Brown hosted a
number of high-level business leaders, including HSBC chief executive Mike
Geohegan and London Stock Exchange
chairman Chris Gibson-Smith.

Brown used the meeting to underline his commitment to promoting the Square
Mile as a major financial centre.

Further reading:

Tories to abolish tax on shares

HSBC: ‘we’ll quit UK over tax’

Tax complexity costs UK jobs

Share

Subscribe to get your daily business insights

Resources & Whitepapers

Why Professional Services Firms Should Ditch Folders and Embrace Metadata
Professional Services

Why Professional Services Firms Should Ditch Folders and Embrace Metadata

3y

Why Professional Services Firms Should Ditch Folde...

In the past decade, the professional services industry has transformed significantly. Digital disruptions, increased competition, and changing market ...

View resource
2 Vital keys to Remaining Competitive for Professional Services Firms

2 Vital keys to Remaining Competitive for Professional Services Firms

3y

2 Vital keys to Remaining Competitive for Professi...

In recent months, professional services firms are facing more pressure than ever to deliver value to clients. Often, clients look at the firms own inf...

View resource
Turn Accounts Payable into a value-engine
Accounting Firms

Turn Accounts Payable into a value-engine

3y

Turn Accounts Payable into a value-engine

In a world of instant results and automated workloads, the potential for AP to drive insights and transform results is enormous. But, if you’re still ...

View resource
Digital Links: A guide to MTD in 2021
Making Tax Digital

Digital Links: A guide to MTD in 2021

3y

Digital Links: A guide to MTD in 2021

The first phase of Making Tax Digital (MTD) saw the requirement for the digital submission of the VAT Return using compliant software. That’s now behi...

View resource