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Budget 2013 - Corporation tax rate 2014-2015

From 2015 Britain will have one of the lowest corporation tax rates in the world.

The Chancellor announced in the Budget that corporation tax will fall from 24 per cent to 21 per cent from 2014, while in 2015 this will fall to 20 per cent. The shortfall in tax revenues is to be funded by a rise in the 'bank levy' - the taxes paid by banks for the value of their debts - to 0.142 per cent.

This would put the UK below countries considered 'low-tax' territories such as Austria and Luxembourg, although income tax in low-tax nations such as Switzerland remains considerably lower. However Hong Kong and Singapore both offer lower corporation tax rates, standing at 16.5 per cent and 17 per cent, respectively

The measure will give the UK a corporation tax rate equal to nations such as the Netherlands and Turkey and is likely to be received favourably by the UK's business community.

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