BUDGET 2002: Confusion over corporation tax
Rates of corporation tax for UK branches of foreign companies will be brought into line with international rates.
Gordon Brown has caused some confusion among the tax fraternity with his Budget announcement that large foreign corporations with branches in the UK will in future pay corporation tax on profits from those branches at a rate in line with the German and US systems.
Speaking to Financial Director magazine, Mike Ridsdale, a tax solicitor from law firm Hammond Suddards Edge said that businesses will have to wait for the full picture.
‘It is difficult to say what Gordon Brown means because legislation is expected to be due in the finance bill, and even then it will be subject to Commons debate,’ he says.