The below Parliamentary question was asked by Bob Stewart on 2016-10-07.
To ask Mr Chancellor of the Exchequer, if he will assess the potential merits of abolishing UK corporation tax.
The Government is committed to a competitive and fair tax system, one that encourages innovation and business investment and taxes the profits of economic activity that occur in the UK. That is why this Government has cut the main rate of corporation tax from 28% in 2010 to 17% in 2020, and announced a package of measures at Budget 2016 to tackle aggressive tax planning by multinationals, forecast to raise around £8 billion across the next five years.
Corporation tax raised £44.4 billion for the Exchequer in 2015/16. This revenue makes a vital contribution to the Government’s wider objectives of delivering vital public services and fiscal sustainability.
The Government will continue to explore how the tax regime can be reformed to best support business investment and growth.