CBI Budget reaction

The emergency Budget contained two major reforms of particular importance to business: corporate taxation and the tax policy-making process.

Corporation Tax (CT) reform

The Government’s five-year roadmap for reform of the UK’s corporate tax regime aims to create the most competitive CT system in the G20 and includes a phased reduction in the headline rate to 24% over the four years from April 2011.

Particularly welcome are both the small net reduction in the effective CT rate over this period and the deferral...