Business tax road map
21 March 2016
HM Treasury has published a Business tax road map which sets out the government’s plans for business taxes to 2020 and beyond.
In 2010, the government set out a corporate tax road map for the first time. This outlined plans to back business through lower corporation tax rates and the modernisation of tax rules and administration. The road map gave businesses the certainty to invest, and a clear and consistent direction for reform. Investment has grown by 30% since 2010, twice as fast as consumption over the same period. Meanwhile the UK was the number one recipient for inward investment in the EU in 2014,119 creating job opportunities across the UK.
The government is building on its achievements in the last Parliament, with a new plan to focus support on small businesses through ambitious reforms to business rates. The Business tax road map will support investment while continuing to crack down on avoidance and aggressive tax planning, making sure rules are fair and taxes paid. In particular, the road map will:
- cut tax rates to drive growth and support small businesses
- modernise the business tax system in line with international best practice
- ensure a level playing field, with large multinationals paying their fair share of tax.
The roadmap aims to give businesses the certainty they need to plan and make the long-term investments that are vital for growth and for boosting the UK’s productivity. The government says that taxes should be low, but must be paid and there should be a level playing field, including between large businesses and small, and between different corporate structures. The system must encourage entrepreneurship and not reward aggressive tax planning. Wherever possible, the government “… will take opportunities to simplify the tax code, and make the administration of tax fit for modern business practices.”