Support 100 years of independent journalism.

  1. Politics
24 May 2021updated 28 Aug 2021 9:37pm

How the UK’s corporation tax rate will remain the lowest in the G7

Rishi Sunak’s plan to increase corporation tax from 19 per cent to 25 per cent will still leave Britain with a lower rate than the US and others. 

By Michael Goodier

The UK will still have the lowest corporation tax rate of any major economy even after Rishi Sunak’s planned rise in 2023. Figures from the OECD show that increasing the UK’s rate from 19 per cent to 25 per cent would still place it behind the US, Canada, Italy, France, Japan and Germany.

 

The UK will host a G7 summit in Cornwall next month and the government is under increasing pressure to endorse Joe Biden’s proposal of a global minimum rate of corporation tax of at least 15 per cent (revised from an earlier proposal of 21 per cent). The aim of the policy is to claw back revenue from international corporate tax abusers, which the Tax Justice Network estimates costs world governments around $427bn a year.

Sign up for The New Statesman’s newsletters Tick the boxes of the newsletters you would like to receive. Quick and essential guide to domestic and global politics from the New Statesman's politics team. The best of the New Statesman, delivered to your inbox every weekday morning. The New Statesman’s global affairs newsletter, every Monday and Friday. A handy, three-minute glance at the week ahead in companies, markets, regulation and investment, landing in your inbox every Monday morning. Our weekly culture newsletter – from books and art to pop culture and memes – sent every Friday. A weekly round-up of some of the best articles featured in the most recent issue of the New Statesman, sent each Saturday. A weekly dig into the New Statesman’s archive of over 100 years of stellar and influential journalism, sent each Wednesday. Sign up to receive information regarding NS events, subscription offers & product updates.
I consent to New Statesman Media Group collecting my details provided via this form in accordance with the Privacy Policy