The chancellor confirmed in his budget on 22nd June, that the main rate of corporation tax will go down from 28% to 24% over four years, coming down by 1% each year.
The small companies’ rate will follow a similar path to reach 20%.
The legislation proposed by the previous government to axe the Furnished Holiday Letting tax breaks was held back and not included in the Finance Act 2010 passed in April, as part of a pre-election deal between the parties.
The new Chancellor announed in his budget on 22nd June 2010 that these proposals would now be shelved.
Accountancy Age reports that the Treasury’s commercial secretary has suggested corporation tax cuts promised by the coalition government will be spread over the five-year term of the current parliament.
Accountancy Age reported tax chiefs at the CIoT calling for a panel of Lords and MPs to be established so discrepancies in tax legislation can be avoided.
