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. Who gets a good deal? Revealing public attitudes to transport in Great Britain

    Transport isn’t working. That’s the message from the British public. This is especially true if you’re on a low income, disabled or living in the countryside. The cost of living crisis has exposed the shortcomings of our transport system,…

  2. Bhargav Srinivasa Desikan on TalkTV discussing AI

    IPPR's Bhargav Srinivasa Desikan on TalkTV discussing his new report on the impact of generative AI on the UK labour market.
  3. Man using AI chatbot

    Transformed by AI: How generative artificial intelligence could affect work in the UK – and how to manage it

    Technological change is a good thing. It has brought exponential gains to living standards and is the foundation of modern society. Yet unmanaged technological change has always come with risks and disruptions.