The Confederation of British Industry’s tax reform task force has now reported on UK business taxation, calling for radical change.
12 tax experts from a spread of leading domestic and UK-based international companies have drafted ‘UK Business tax: a compelling case for change’. Their view is that increasing tax burdens and an inflexible approach is damaging the international status and competitiveness of UK business.
The key recommendations are:
- A headline corporation tax rate of 18% within 8 years
- Tax calculated on existing company accounts - no maintenance of 2 sets of books
- ‘No surprises’ legislative approach - proper consultation and parliamentary scrutiny
- A non-political, independent law commission
- Proactive UK government action on all cross border tax issues
- A simplified and improved tax system to stimulate growth of SMEs - taxed at 18% in 3 years
CBI Director-General, Richard Lambert, commented: “Our traditional tax system is no longer fit for purpose and is making the UK look increasingly uncompetitive. We need bold action to restore a competitive headline rate of corporate tax.”
Will this report be in time to change the chancellor’s plans for the budget?
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