Continue with the Budget 2007 reforms to Corporation Tax in the future
We, the undersigned, petition the Prime Minister to Continue with the Budget 2007 reforms to Corporation Tax in the future
In his 2007 budget, the Chancellor introduced some welcome reforms to Corporation Tax that will help simplify the system. Corporation Tax reform should now be taken further with the following measures:
- tax all profits between £300,000 and £1.5 million at the main rate of 30 per cent to eliminate the long-standing anomaly where medium-sized firms are facing a marginal rate of 32.75 per cent on some of their profits;
- abolish Corporation Tax relief for life insurance policies, which currently benefits a few at the expense of the many;
- and abolish Corporation Tax relief for substantial shareholdings, which supports a few large businesses at the expense of many other successful businesses.
According to the "Tax Expenditures and Structural Reliefs" section of HMRC, the latter two measures would raise nearly £1.5 billion.
This £1.5 billion should then be used to cut Corporation Tax by a further 1 per cent from the Chancellor’s proposed 28 per cent in 2008-09 to 27 per cent.
These three measures would simplify the tax system and eliminate distortions designed to give privilege for the few the expense of the many.
This petition closed on Wednesday 14 May 2008 without having attracted any support at all. The creator was left in a minority of one. Here’s your chance to comment on this petition.