The Anonymous Widower

Threat Of UK Tax Cut Staves Off Hostile EU

This is the headline on an article in the Sunday Times, which suggests that the UK may cut corporate tax rates from 20% to 10% unless the EU grants the UK access to the single market.

I don’t know whether it is speculation on the paper’s part, but it does illustrate how Brexit means that it removes a whole set of rules from the UK Government.

It is an interesting suggestion!

I think it could have these effects.

  • Companies like Apple, Starbucks, Google and Amazon would look at the UK favourably.
  • If a company was spending fortunes on research, the UK would probably be more attractive, as if say they developed a world-beating drug, they wouldn’t pay as much tax on the large profits.

But I never heard it mentioned in the Referendum.

It probably shows how our politicians all think inside boxes and that those in Europe do even more so!

October 23, 2016 - Posted by | Finance, World | , ,

2 Comments »

  1. Northern Ireland corporation tax rate might be 12.5% from 2018, but: –

    http://www.belfasttelegraph.co.uk/business/news/uks-proposed-corporation-tax-cut-will-be-blow-to-northern-ireland-34854155.html

    Comment by Mark Clayton | October 23, 2016 | Reply

    • I don’t think it matters, who cuts rates, but I was using it as an illustration of how things will change and the poor thinking on both sides in the Referendum.

      Comment by AnonW | October 23, 2016 | Reply


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