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Saturday 3 December 2016

UK declares war on our corporation tax rates

Published 09/07/2015 | 02:30

Chancellor George Osborne pledged to reduce tax on profits to 18pc - a full 10pc less than when he first took office in 2010
Chancellor George Osborne pledged to reduce tax on profits to 18pc - a full 10pc less than when he first took office in 2010

The UK government's decision to slash corporation tax has piled pressure on Ireland in the battle to attract foreign investment.

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Britain is to repeatedly cut its rate between now and 2020.

Chancellor George Osborne pledged to reduce tax on profits to 18pc - a full 10pc less than when he first took office in 2010.

Although not quite as low as our rate of 12.5pc, the move will make Britain a far more attractive base to invest.

Britain already benefits from a larger market and better infrastructural connections to mainland Europe.

But this move will also reduce the cost base for British companies who are competing with Irish industry for business.

Businesses say the measure is a wake-up call.

"A cut to the UK corporate tax rate, along with recent innovation tax incentives, means the UK now has one of the most attractive tax offerings in Europe," warned Ibec economist Fergal O'Brien.

Irish Independent

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