Coalition fails to achieve most competitive corporation tax rate

THE government is set to fail in its bid to produce the most competitive corporate tax system in the G20, according to research from Oxford University released today.

The UK currently has the ninth lowest corporation tax in the G20. This will improve to fifth if the coalition’s reforms are seen through, but only if other countries do not also cut rates.

“The main problem for the UK is that allowances for capital expenditure are the lowest in the G20,” said the report by the Oxford University Centre for Business Taxation at Saïd Business School.