TaxCorporate TaxCBI urges ‘radical’ overhaul of UK’s corporate tax

CBI urges ‘radical’ overhaul of UK’s corporate tax

CBI report urges ‘radical overhaul’ of UK’s corporate tax to regain ‘internationally competitive’ status

A report, prepared by a
CBI
taskforce, stresses a radical overhaul of the UK’s corporate tax system is
urgently needed for the country to regain its status as an internationally
competitive location.

The report, ‘UK business tax: a compelling case for change’, is calling for a
drop in the headline corporation tax rate from 28% to 18% within eight years,
suggesting the cut would more than pay for itself over time through increased
economic activity.

‘An 18% business rate within eight years would help restore the UK’s low tax
credentials. But a radical shake-up is also vital if clarity, certainty and
simplicity are to be reintroduced to the system so firms can plan with
confidence and make Britain their long-term home,’ Richard Lambert, CBI
director-general, said.

The report also calls for tax calculated on the basis of existing company
accounts; a ‘no surprises’ legislative and administrative process, allowing more
time for proper consultation on tax proposals; a non-political, independent tax
law commission; proactive UK government action on all cross border tax issues;
and a simplified and improved tax system to stimulate the growth of small and
medium-sized enterprises.

Further reading:

ABI warns Treasury against ‘ill-thought-out’ taxes

PM’s adviser warns on tax competitiveness

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