Fair dues: Rebalancing business taxation in the UK

Article

Over the last decade a substantial reduction in the effective rate of corporation tax has been accompanied by a rise in employers’ national insurance contributions. At the same time there has been increasing public focus on corporate tax avoidance, both through the use of accounting procedures to minimise tax paid in different national jurisdictions and through tax havens.

This policy paper argues for a rebalancing of the business taxation system. It sets out a series of reforms aimed at achieving a fairer burden of taxation between different kinds of businesses and taxpayers, while supporting employment, wages and investment. It proposes a fiscally-neutral increase in the rate of corporation tax, alongside a reduction in employers’ national insurance contributions; and an increase in the base for corporation tax through a simplification and reduction in reliefs and allowances. It also proposes the introduction of an Alternative Minimum
Corporation Tax in order to reduce profit shifting by multinational corporations, alongside greater support for international efforts to combat tax avoidance.

Related items

  1. An older man with a walking stick is sitting on a sofa having his temperature taken with a thermometer in his ear by a female nurse in uniform

    This time must be different: Overcoming barriers to social care reform

    Adult social care services across England are struggling to keep up with increased demand, let alone improve. But failure is not an option.
  2. Queen Square Bus Station on Hood Street in Liverpool city centre

    En route to renewal: Delivering better, greener buses

    Good buses drive a strong economy, healthy environment and thriving society. 
  3. Townhouses beside the railway on the viaduct with a running train in Durham, UK

    On track to prosperity: Great Northern Rail

    It’s time the North saw real change for better transport, delivering prosperity and better lives: a long-term plan for Great Northern Rail