The Chancellor has announced that the rate of corporation tax will be lowered by a further 1% by 2020. The rates of corporation tax are now set to be 19% from 1 April 2017 and then lowered to 17% from 1 April 2020.
This is an unexpected and welcome cut. This corporation tax rate cut will mean that the UK has the lowest tax rate in the G20 and further enhances the UK’s international competitiveness from a tax perspective. It does however sit slightly at odds with the objective of the OECD BEPS Project to reduce tax competition between countries.
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