I have received numerous letters regarding corporation tax.
A commitment to a competitive tax system with lower taxes is important for businesses and individuals. That is why Corporation Tax has been cut, and the Government plans to cut it further to 17 per cent in 2020, benefiting over one million companies, large and small. This will represent an 11 percentage point reduction compared to 2010, giving Britain one of the lowest rates of any major economy in the world.
But the tax system also needs to be fair. The Government will therefore continue to address imbalances in the system where some businesses benefit disproportionately from certain rules, and will also continue to tackle aggressive avoidance, evasion, non-compliance and tax planning. For example, since April 2017 the amount of profit that can be offset by carried-forward losses for Corporation Tax purposes has been restricted to 50 per cent.
Continued support is needed for businesses and enterprise to drive up productivity growth and create job opportunities. To this end, I am encouraged that Ministers continue to lower taxes, with new support for small business and entrepreneurs, while also modernising the tax system and taking steps to ensure that taxes are fair and are paid.
November 2018