No major changes to corporation tax likely
Budget speech will offer only 'tasters'
Despite growing revenues, which may be unsustainable in the longer term, the
chancellor is unlikely to bring about whole sale changes to the corporation tax
regime on 22 March when he reveals his fiscal plans for the coming year, John
Whiting, tax partner at PricewaterhouseCoopers, has said.
Whiting said that with the UK’s tax system looking less competitive for
businesses than it once was and the government taking a relatively high
proportion of its taxes in corporation tax, it was time to ‘commission a long
hard look at where the tax is going’.
However, he said ‘the chances are that we will have to wait with action
limited to tasters.’
These he said would include ‘much needed moves on bringing aspects of the tax
system into line with EU rules in the wake of European Court of Justice
decisions’, the abolition of the outdated schedular system, ‘possible tweaks to
the profits limits for the 19% small companies rate’ and some gestures to
smaller with higher capital allowances.