Britain urged to reduce its corporation tax to 10%

An influential think tank has urged the British government to cut corporation tax to 10%, 2.5% lower than Ireland’s much criticised tax.

The Centre for Policy Studies is urging Prime Minister David Cameron to cut corporation tax to as little as 10% because it is the “only source of a viable economic recovery”.

Tim Knox, director of the Centre for Policy Studies, said: “Profitable businesses are the only source of a viable economic recovery, the chancellor should reduce the rate of corporation tax in the 2012 Budget — and also announce his intention to reduce it even further to 15% or even 10% once the appropriate anti-evasion measures are in place.”