FT's discussion of possible futures for UK #taxes has now moved to #corporationtax.

Their preferred position is to retain the 'full expensing' for #investment (all costs of investment can be deducted from #tax), while removing allowances for interest payments on #debt.

The hope is this will shift firms' attention from loans to internally funded investment to help deal with the UK's #productivity problem.

It also plays to the FT's overall position on tax simplification!

Might make sense?

This week, we're going to test the proportion that #CorporationTax rates have a material effect on incoming investment... as rate rises from 19%-25%.

However, all is not as it may seem; #JeremyHunt has also launched 100% #taxrelief on capital investment, which may offer some help to #manufacturing whose CapEx needs are (likely) more pronounced than the #servicesector.

Q.is whether the tax rise causes any exits from the UK by large mobile firms, or whether #sunkcosts will keep them here anyway?

More small print from the #budget:

After lobbying by some ministers #JeremyHunt dropped a proposal to require #SoveriegnWelathFunds (SWFs) to pay #CorporationTax

Once again, we can see who this budget was for; with #incometaxes thresholds not rising with #inflation, lifetime pension allowances raised & other measures, for the most part this was a budget for the rich whether living here, or as in the case of SWFs just investing here.

No, as Leona Helmsley said: tax is for the little people

Brighty on #JeremyHunt #CorporationTax - political cartoon gallery in London original-political-cartoon.com

#CorporationTax #UKGovt #UTurn
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RT @Phastidio
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