UK corporation tax 'unattractive' to businesses

An increase in corporation tax paid by the UK's largest companies over the last year has outstripped profits and caused concern for businesses, according to the Telegraph.

The UK's largest businesses have seen their corporation tax bills increase by 12 per cent in the last year and by 50 per cent in the last four years, research by PricewaterhouseCooper (PwC) has found.

Chairman of The Hundred Group Ashley Almanza told the Telegraph that increases in profits were not high enough to merit the rise in corporation tax receipts.

"Corporation taxes are rising faster than profitability. If that was a trend it would be of concern to business and I would hope a concern to government," Mr Almanza said.

The Hundred Group is largely made up of finance directors drawn from FTSE 100 companies.

According to HM Revenue and Customs (HMRC) the rate of tax paid by small companies increased from 19 per cent to 20 per cent last year.

Corporation tax rates apply when company profits exceed £1.5 million or when no other tax rate can be applied, HMRC says.