Budget response: CIOT welcomes package of corporation tax measures
The Chartered Institute of Taxation (CIOT) welcomes the five year plan on changes in corporation tax, which improves certainty and clarity over the way that rates and allowances are expected to move in the medium term.
John Whiting, Tax Policy Director at the CIOT said:
“Certainty is key to business decisions and setting out a road map in this way allows businesses to plan with an additional degree of certainty. Delaying the cuts in capital allowances gives time for businesses to adjust investment plans.
“The reduction in tax rates will make the UK a more attractive place to do business.”
The basket of measures included a reduction in the small profits rate to 20% with effect from April 2011.
John Whiting said:
“This reduction will be attractive to small businesses, although all these headline rate cuts are of course countered by a small reduction in available capital allowances. Although this will affect those businesses which invest heavily in plant and machinery, it is likely to encourage companies to be more efficient, rather than allowing tax reliefs to dictate spending decisions.”
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Notes to Editors
1. The Chartered Institute of Taxation (CIOT) is a charity and the leading professional body in the United Kingdom concerned solely with taxation. The CIOT’s primary purpose is to promote education and study of the administration and practice of taxation. One of the key aims is to achieve a better, more efficient, tax system for all affected by it – taxpayers, advisers and the authorities.
The CIOT’s comments and recommendations on tax issues are made solely in order to achieve its primary purpose: it is politically neutral in its work. The CIOT will seek to draw on its members’ experience in private practice, government, commerce and industry and academia to argue and explain how public policy objectives (to the extent that these are clearly stated or can be discerned) can most effectively be achieved.
The CIOT’s 15,000 members have the practising title of ‘Chartered Tax Adviser’.
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George Crozier
External Relations Manager
D: +44 (0)20 7340 0569
M: +44 (0)7740 477374
The Chartered Institute of Taxation
Registered charity number 1037771
www.tax.org.uk
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