Osborne said corporation tax will be slashed by 2% from April and will continue to fall by 1% in each of the following three tax years as he declared “Britain is open for business”.
The move will reduce corporation tax to 23% – 16% lower than the US and 11% lower than France.
Today’s sop to large corporates is part of a wider business-friendly Budget designed to kick-start the economy amid signs of a recent slowing.
Osborne said Britain will now have the lowest rate of corporation tax among G7 economies.
Blick Rothenberg says the reduction in corporation tax will encourage firms to invest in UK
Osborne previously pledged to cut corporation tax from 28% today to 24% in 2014. Small businesses with earnings below £300,000 a year pay 21%.
In a further sop to the business world, Osborne said income Tax relief on Enterprise Investment Schemes will increase from 20% to 30% in April 2011.
