Lower corporation tax would benefit small firms, says expert

Date: 27th September 2011

A lower corporation tax would lead to more profitable businesses in Scotland, an expert has suggested.

Jo Nockels, training and communications manager at TaxAssist Accountants, observed that this development could help to attract new investors to Scottish enterprises.

This comes after the Scottish government proposed taking control of corporation tax.

"Devolution of corporation tax, the Scottish government estimates, would lead to a 1.9 per cent increase in overall investment after 20 years," Ms Nockels remarked.

"Extra profits should also incentivise existing businesses to increase their physical and human investment, and the Scottish government estimates that 27,000 jobs will be created after 20 years."

By implementing a more competitive tax regime, she suggested that Scottish firms would become even more competitive, thus "boosting their profitability and success".

According to estimates, corporation tax costs in Scotland currently stand at around £28 million.

The Scottish government, however, has suggested that devolution will allow them to implement a less burdensome system than the rest of the UK.

Posted by Thomas Fletcher