Corporation tax rates set to fall
13th November 2018Following the Autumn Budget on 29th October 2018, it was confirmed that Corporation Tax rates will fall to 17% from 1st April 2020.
Currently, the Corporation Tax rate is 19% and this will remain until the 17% rate comes into force.
Presumably the reason for introducing lower rates is to make the UK more competitive, therefore attracting businesses to the UK in light of Brexit.
Cutting the Corporation Tax rate is generally motivated by hopes that more money in Companies will result in corporate investment. Companies investing more of their money to grow and improve their businesses may mean a benefit to the workers who may experience a pay increase; or reductions in unemployment figures if Companies are looking to take on more staff.
Others believe that reducing the Corporation Tax rate is another tax cut for the rich that does not affect the everyday worker.
Will the changes to Corporation Tax rates affect you? I would welcome your thoughts jaimieking@whitingsllp.co.uk
Disclaimer - All information in this post was correct at time of writing.
