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

A report, prepared by a
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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