Budget 2012: Osborne confirms corporation tax cut to 24 percent
The headline rate was due to fall to 25 percent this year so this marks an additional 1 percent cut
Chancellor George Osborne confirmed to parliament leaked reports that he will cut corporation tax by an additional 1 percent from next month, taking the headline tax for business to 24 percent.
Corporation tax was already due to fall to 25 percent in April.
Osborne said he would continue with the two other scheduled cuts in the rate, reducing corporation tax to 22 percent by 2014.
"A headline rate that is not just lower than our competitors, but dramatically lower," the chancellor told MPs.
He said it was 18 percent lower than the US and 16 percent lower than Japan.
"And a rate that puts our country within sight of a 20 percent rate of business tax that would align basic rate income tax, the small companies rate and the corporation tax rate," Osborne said.
New rules on controlled foreign companies will also be legislated on in the Finance bill and "will stop foreign companies leaving" the UK, the chancellor added.
The changes he said will ensure "a tax system that's more competitive than any other economy in the world".
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