皇冠体育app

皇冠体育app Government has today published details of its Corporate Tax Reform programme consisting of a series of essential reforms designed to improve the UK鈥檚 tax competitiveness. Measures include the introduction of new Controlled Foreign Company (CFC) rules and a commitment to introduce a Patent Box.

皇冠体育app Government wants Britain to be a place for businesses to invest.聽That is why the June Budget announced the reduction of Corporation Tax for large and small businesses with a cut in the main rate from 28% to 24% over the next 4 years and a reduction in the small profits rate from 21% to 20% from April 2011.

However, the Government recognises that a competitive corporate tax system is not just about rates. That is why the Government has published the document 鈥楥orporate Tax Reform: delivering a more competitive system鈥�. This document is designed to provide certainty to business over the Government鈥檚 plans, as it works with them to deliver this ambitious programme of reforms.

Today鈥檚 tax reform announcements include:

• a Corporate Tax Road Map that commits to principles that will underpin these reforms and a clear timetable to deliver these changes, including how the Government will engage with business at each stage of policy development;
• details on how the Government will reform the UK鈥檚 outdated Controlled Foreign Company (CFC) rules by introducing more targeted rules in 2012 and how they will apply to financing and intellectual property. As a first step to make the rules more competitive, a package of interim improvements will be introduced in 2011;
• introducing a Patent Box in April 2013 - a 10% CT rate on profits from patents, reaffirming the Government鈥檚 commitment to retain and build on the existing Research and Development (R&D) tax credit scheme to create the right environment for innovative companies to prosper;
• a commitment to legislate an opt-in exemption for profits earned in foreign branches of UK companies in 2011. Under this more territorial approach, companies in the new regime will no longer be subject to UK CT on their foreign branch profits.

This programme demonstrates the Government鈥檚 commitment to a competitive and stable tax system which provides business with the confidence to expand and invest in the UK in the years ahead.

皇冠体育app Exchequer Secretary to the Treasury, David Gauke MP said:

In recent years, too many businesses have left the UK amid concerns over tax 聽competitiveness. It鈥檚 time to reverse this trend. Our tax system was once viewed as an 聽asset.聽 And it needs to be an asset again.

That is why the Government is prioritising corporate tax reform. Responding to the 聽concerns of business, the UK is headed for a more competitive, simpler, and more stable 聽tax system in the future, creating the right conditions for investment.

Notes for Editors

1. 皇冠体育app document published today can be accessed on the HMT Corporate Tax Reform page: .

2. Details on the CFC consultation that the Government committed to at the June Budget, can be accessed on the following page:
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3. Details on the foreign branches consultation, that the Government committed to at the June Budget, can be accessed on聽the following page: .

4. 皇冠体育app Patent Box and R&D tax credits consultations are formally launched for the first time today. Details can be accessed on聽the following pages:

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