01/12/2010
Chancellor of the Exchequer George Osborne has announced plans to implement a 10 percent corporate tax rate, designed to encourage entrepreneurs and reduces the levies imposed on overseas profit, reports The Daily Mail.
The fine details will mean that all profits related to intellectual property and patents will be taxed at ten percent, and should boost the attraction of setting up a new business within the UK. Those looking for sales finance should be more encouraged to apply for it to push their businesses forwards, as Osborne has called this "the most significant programme of corporate tax reforms for a generation,'' reports The Wall Street Journal.
The reform will also allow companies to benefit from an eight percent rate on all offshore financing operations. "For a long time, we have argued that we should increase the incentives to innovate and develop new products in this country," says Osborne of his announcement.
"So to encourage hi-tech businesses to invest in the UK and to create high-value jobs here, we can confirm that we will introduce from April 2012 a lower ten percent corporate tax rate of profits from newly-commercialised patents. Brick by brick we will remove the barriers that are holding Britain back." he added.
The announcement comes off the back of recent Government predictions about the economy, with economic growth predicted at 2.1 percent in 2011, and 2.6 percent in 2012, mitigating the risk of a double-dip recession.
Deborah Bates