The latest United Kingdom budget shows that the corporate tax rate in Britain will be cut by an additional one percent to 20 percent by April 2015. This is in stark contrast to the previous 28 percent rate which was in effect three years ago in 2010.
The latest cut in the UK’s corporate tax rate sends “a clear message to anyone who wants to invest here, to create jobs here, that Britain is open for business”, UK’s chancellor George Osborne said in his March Budget statement.
The cuts mean that the UK’s corporate tax rate is significantly lower than other economies, including Germany (29 percent) and France (33 per cent). Such tax incentives are aimed at attracting businesses to the UK.
Thinking of setting up a business in the UK? You should, of course, consult with a tax professional.