Osborne CIT Cut Pledge Short On Details

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Osborne CIT Cut Pledge Short On Details

Thursday, May 20, 2010

Small businesses and sole traders in the United Kingdom have been heartened by a pledge from Chancellor George Osborne on Wednesday night to ensure that the UK's corporate income tax are the lowest in the G20 within five years.

Disappointingly for some in the business community, who had been expecting confirmation of the up to 3% rate corporate income tax rate cut that had been the subject of fevered media speculation this week, the Chancellor was somewhat short on detail in his speech to the annual Confederation of British Industry dinner.

Mr Osborne reportedly told those attending the event that:

"“I want corporate tax reform to be a priority for this government and I can confirm that the final coalition agreement will commit us to lower and simpler corporate tax rates."

With an emergency budget confirmed for June 22, there is isn't long to wait for certainty on this issue. However, given the other nasty surprises that the budget is likely (of necessity, given the need to bring the deficit under control as soon as possible) to contain, potentially including a VAT increase, and deep spending cuts, business taxpayers are likely to be viewing that date with equal amounts of anticipation and trepidation.