Corporation tax on small businesses should be cut

Date: 22nd July 2008

Tax professionals would like to see corporation tax on small businesses cut, a new survey has revealed.

The data, released by CCH, showed that 53.3 per cent of accountants and tax specialists would like to see a reduction in corporation tax on small businesses in a bid to boost the country's competitiveness.

Over a third (37.6 per cent) said they thought fuel taxes should be reduced to help businesses.

Interestingly, only 11 per cent said that corporation tax for larger companies should be reduced.

Martin Casimir, the executive director of CCH, explained to the Press Association: "Tax experts have spoken loud and clear about what should inform the debate on taxation running up to the next general election.

"The focus is usually on income tax at general elections but, with the economy in trouble, tax experts are unequivocal about the need to ease the tax burden on the wealth-creating small business sector."

Mr Casimir added that the increase in corporation from 19p to 22p in last year's Budget had created "a huge amount of pent-up concern".

Recently, the Chartered Institute of Taxation said that it was vital the government looked at the whole range of business taxes, rather than just at one at a time.