Chancellor Cuts Corporation Tax

From the first of April 2017, the corporation tax rate will be 19%. This is 1% lower than 2016-2017. The UK now has the lowest corporate tax rate in the G20.

The rate looks to be further cut to 17% by 2020. This measure by Chancellor Philip Hammond is designed to attract investment in the light of the Brexit environment.

The Chancellor says ‘We have an economy that has continued to confound the commentators and deficit down by over two thirds. As we prepare to exit Brexit, this Budget builds a foundation of a fairer, more global Britain.

‘Last year, the British economy grew faster than US, Japan and France; Britain’s economic growth is second only to Germany last year. But there is no room for complacency as we prepare for our future outside of the EU.’

As proposed in the Autumn Statement 2016, the government will cut the rate of corporation tax to 19% from April 2017 and again to 17% in 2020. The government states this offers businesses greater stability in their tax planning and investment decisions.

Source for information http://https://www.gov.uk/guidance/rates-and-thresholds-for-employers-2017-to-2018