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Budget 2013: Corporation tax to fall to 20% by 2015
Markets
by Sarah Miloudi on Mar 20, 2013 at 13:14
Corporation tax will be reduced by a further 1%, a move announced in today's Budget to help relieve the stress on Britain's businesses.
The rate will drop to 20% by April 2015, a change that formed part of a sweeping range of measures to support UK firms.
It is not the first time the government has addressed corporation tax, as when the coalition came to power it cut the rate from 28% to 21%.
While the latest change is a welcome addition, experts were slightly sceptical of Osborne's move and warned the benefits may be too small.
Andrew Scott, professor of economics and deputy dean of programmes at the London Business School, said: 'The cut in corporation taxes for small companies is welcome but modest and gradual.'
Scott added an alternative route could have been to focus on reducing debt relative to GDP by seeking more GDP growth.
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