The UK is Set to Plummet 16 Places in the Global CT League Table - TS Partners
by Liz Seyi Digital marketing managerThe UK Government’s decision to put up Corporation
Tax from 19% to 25%, taking effect from next April, will cause the country to
fall 16 places on the global ‘league table’ for corporate tax, from sixth to
21st.
That is the finding of new research reported by Accountancy
Today and shows the stark impact of the change that received Royal Assent
in June 2021. Even after the increase, the UK is set to be more competitive
than many comparable economies.
“A fine balancing act”
A tax expert quoted for the Accountancy Today story,
Andrew Snowdon, commented: “For years, the UK has been known as an established
locale for international business, and these upcoming tax hikes may lead investors
to question the UK as a place to set up shop.
“The Government is undertaking a fine balancing act
between keeping the UK attractive for business owners large and small, as well
as remaining competitive in the global arena.
“While the UK has spearheaded one of the most
dramatic corporate tax increases globally, many countries are likely to follow
suit now the competition for rock bottom tax rates appears to have
ended.”
However, there has been more scathing criticism of
the Corporation Tax increase from other sources – such as John Redwood, an MP
for the ruling Conservative Party, who described it as a “bad policy at a worse
time” that would “turn off investment when people are worried about a
recession, and there is less money to attract.”
So, where would the UK figure in
the new international rankings for corporate tax?
The UK’s sixth place in the ‘league table’ for
corporate tax competitiveness in the 2020/21 tax year places it level with
Poland and behind only the Republic of Ireland, Romania, Belarus, and Croatia.
Its 19% rate for this tax is also well below the European (22.6%) and global
(25.1%) averages.
Even the new tax rate would leave the UK just shy
of the global average in 2020/21 terms, and alongside such parts of the world
like Spain, Uruguay, the Philippines, Guatemala, and China.
Countries with much higher corporate tax rates than
the UK’s impending new rate, as of 2020/21, included the likes of New Zealand,
Germany, Mexico, Brazil, Malta, and Japan.
Would you appreciate the tailored Corporation Tax support in Newton Abbot,
Plymouth or Wellington that would enable your organisation to keep on top of
its responsibilities in this area? If so, you are welcome to enquire with the TS Partners team today.
Sponsor Ads
Created on Aug 27th 2022 14:28. Viewed 73 times.