Chancellor keeps pledge as corporation tax in UK cut to 20%

Britain’s chancellor of the exchequer George Osborne has followed through on a pledge when he took office to make the corporate tax rate competitive.

Following yesterday’s UK budget, the corporate tax rate has been cut 1% to 20% and down from 28% in 2010. Even though it has been reduced by 8% over the past three years, it is still well above Ireland’s rate of 12.5%.

Commenting on the move, tax partner at Ernst & Young, Michael Hall said: “By confirming that the UK and Northern Ireland’s corporate tax rate will drop to 20%, the chancellor has delivered the ambition he set out in the last budget. The UK’s tax regime is already attracting more jobs and investment, and this latest step reinforces the message that Britain is open for business.