Tories pledge to cut corporation tax
PwC report used to support Tory pledge to cut tax for business
Conservative shadow chancellor
George Osborne has thrown the
pressure onto Gordon Brown by promising to cut corporation tax from 30% to 27%
after commissioning a report by
PricewaterhouseCoopers.
In an interview with the
FT Osborne said the cost of the measure, around £4.5bn, would
be paid for by phasing out various capital reliefs that are currently available.
‘We’re confident that we can achieve this as part of a major reform of
corporation tax. This is an entirely self-contained, and self-financing
simplification of the business tax system,’ Osborne said.
It has been suggested that the Tories have publicised this policy before the
Budget because the fear that Brown will introduce a similar change to
corporation tax, and want to take the plaudits for the bold shift in business
tax.
Further reading:
Tories call in PwC to advise on tax
Cameron signals corporation tax cuts
UK tax competitiveness reaches tipping point