Corporation tax is to be reduced from 26% to 24% from 1 April in an attempt to attract business investment.
In his last Budget, George Osborne had already announced a reduction in the rate of corporation tax to 25% on 1 April 2012.
However, today’s further reduction means the government is on target to bring it to 22% by 2014 and “within sight” of 20%.
Osborne also announced plans which could lead to small firms being taxed on the amount of cash passing through their businesses rather than more complicated methods used for large companies.
The move, which will simplify the process, will apply to businesses with a turnover of up to £77,000.
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