UK Eyes Post-Brexit Tax Cut
July 4, 2016 Taxation in UK
LONDON – Following the recent Brexit referendum, the UK could have the political freedom to drastically slash taxes.
In an interview released over the weekend the Minister of Finance of UK George Osborne said that over the coming years the government will try to slash the rate of corporate taxes to as low as 15 percent.
The rate of corporate income tax in the UK is already set to be cut from 20 percent to 17 percent by 2020.
The Minister did not detail when such a tax cut would be enacted or how it would be funded, but he did urge the UK to “get on with it” in order to show foreign investor that the country would build a “super competitive economy”.
The move to cut the rate of corporate income tax has been a controversial topic over the last few days, as some business groups and accounting experts called for the reduction following the recent referendum results in which the UK voted to leave the EU.
The sentiment was backed in an internal email of the Organization for Economic Cooperation and Development, which said that it would technically be possible for the UK to lower its taxes as it would no longer be bound by EU regulations.
Photo by: Alan Dean