This was a Budget designed to fit the current economic straitjacket. It was fiscally neutral so that any tax raising measures and expenditure cuts are equalised out by tax cuts and expenditure increases. However, the overall thrust remains very firmly open for business, but closed to avoidance or as the Chancellor called it – a budget “for an aspiration nation”.
The most prominent corporation tax change is the proposed reduction of corporation tax to 20% with effect from April 2015 giving the UK the joint lowest rate in the G20. As could be expected, the bank levy will increase ostensibly so banks do not enjoy a reduction in their overall effective tax rate.
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