Winter Economy Plan – Summary
September 28, 2020
Corporation tax should be cut to 10% as part of a ‘radical reform’ of the tax system, according to a group of MPs.
In a new report, the Free Enterprise Group calls for tax reliefs and ‘international avoidance structuring’ to be abolished in order to fund a reduction in the headline rate of corporation tax.
It suggests that a 10% corporation tax rate, in conjunction with an overhaul of existing tax laws, would create a more competitive ‘loophole free system fit for the internet age.’
The group, which consists of 40 senior Conservative MPs, suggests that reform of the current tax codes would hinder ‘foreign-based multinationals’ which ‘avoid UK taxes on an industrial scale’.
Author of the paper, Charlie Elphicke MP, writes; ‘The total tax reliefs abolished and anti- avoidance measures taken would amount to £23bn in tax foregone at current rates’.
‘If the abolition of the reliefs and international tax reform measures were put entirely to a reduction in the headline rate, the headline rate would fall to 14% and then to 12.5% by the end of this parliament’.
‘In view of this a 10% corporation tax rate should be an achievable goal’.