"I am today cutting the main corporation tax rate again by a
further 1%," Osborne said in his Autumn Statement.
The corporate tax rate would therefore drop to 21% from
April 2014, instead of 22% as originally planned.
"In America, the rate is 40%; in France it is 33%; in
Germany it is 29%. From April 2014, the corporation tax rate in
Britain will stand at 21%. This is the lowest rate of any major
western economy. It is an advert for our country that says:
come here, invest here, create jobs here; Britain is open for
business," Osborne said.
The Chancellor has already cut corporation tax from 28% to
24% during his term, and it was scheduled to fall to 22% in
2014, so today’s one percentage point reduction
was not expected, though it is sure to be welcomed by
The Chancellor also said "we will not pass the benefit of
this reduced rate on to banks," and announced an increase in
the bank levy, which will rise to 0.130% next year.
Read International Tax Review’s comprehensive
coverage of George Osborne’s Autumn Statement here.