
Summer Budget 2015: A 500-word summary for the UK business community
The chancellor said that Britain currently enjoys the joint lowest rate of corporation tax of the G20 countries and he would continue on this path so “businesses can grow with confidence”. Osborne reflected on the strength of the British economy, mentioning that it is growing faster than “any other major advanced economy”, and also credited businesses with creating two million more jobs.
He pointed to the fact the Conservatives had cut corporation tax from 28 per cent to 20 per cent over the course of the last parliament, deeming it “one of the biggest boosts British business has ever seen”. In order to take it lower, something had to be done about the strong incentives that existed for people to self-incorporate and pay lower rates of tax due on dividends. Osborne said the government had inherited “a very complex and archaic system” and he would be undertaking a “long overdue reform”.- George Osborne says tax dodgers have “nowhere to hide”
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Stella Amiss, international tax partner at PwC, called it a “bold and surprise move”. “
“Businesses weren’t calling for a further rate reduction, and it’s expensive – £6.6bn over five years,” she added. “But it sends a clear signal that the Government is pro tax competition and this message may be helpful in attracting overseas business to UK shores.”
Amiss also said the anti-avoidance measures for corporates were “relatively piecemeal” and would simply be “tinkering around the edges rather than making a big difference”.
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