CIOT: Tax advisers welcome the simplification of corporation tax rates
The Chartered Institute of Taxation (CIOT) has welcomed the Chancellor’s announcement today that the main rate of corporation tax will be reduced to 20% from April 2015.
CIOT Deputy President, Stephen Coleclough, said:
“The reduction in the main rate of corporation tax to 20% in April 2015 is obviously good news for larger businesses and for the image abroad of the UK’s tax system.
“It also has an important simplification benefit as the main rate and the small profits rate will be harmonised at 20%. There will no longer be a need for many medium-sized companies to spend time planning their affairs to minimise profits between £300,000 and £1.5m, which are currently taxed at a third, higher marginal rate. There will be no incentive for companies to, sometimes artificially, keep profits to under £300,000.
“The economic justification for having a lower rate for smaller companies has been wafer thin. Simplifying the system in this way has got to be good for business and good for the economy.”
Notes to editors
1. The Chartered Institute of Taxation
The Chartered Institute of Taxation (CIOT) is the leading professional body in the United Kingdom concerned solely with taxation. The CIOT is an educational charity, promoting education and study of the administration and practice of taxation. One of our key aims is to work for a better, more efficient, tax system for all affected by it – taxpayers, their advisers and the authorities. The CIOT’s work covers all aspects of taxation, including direct and indirect taxes and duties. Through our Low Incomes Tax Reform Group (LITRG), the CIOT has a particular focus on improving the tax system, including tax credits and benefits, for the unrepresented taxpayer.
The CIOT draws on our members’ experience in private practice, commerce and industry, government and academia to improve tax administration and propose and explain how tax policy objectives can most effectively be achieved. We also link to, and draw on, similar leading professional tax bodies in other countries. The CIOT’s comments and recommendations on tax issues are made in line with our charitable objectives: we are politically neutral in our work.
The CIOT’s 16,500 members have the practising title of ‘Chartered Tax Adviser’ and the designatory letters ‘CTA’, to represent the leading tax qualification.
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