Britain plans to cut corporate tax to under 15%: report

[LONDON] British finance minister George Osborne plans to slash corporation tax to under 15 per cent to tempt businesses to stay following the country's shock vote to leave the European Union, the Financial Times reported Sunday.

Mr Osborne plans to create a what he called a super-competitive economy, cutting corporation tax by over five percentage points from 20 per cent currently to the lowest for any major economy, it said.

"We must focus on the horizon and the journey ahead and make the most of the hand we've been dealt," Mr Osborne told the newspaper.

The move, which would bring corporation tax close to Ireland's 12.5 per cent rate, follows concern companies could flee the uncertainty hanging over Britain's future relationship with the EU.

The June 23 vote to leave the 28-member bloc sent the value of the British pound tumbling against the dollar and rocked financial markets.

Airline EasyJet, British Airways owner IAG, and estate agency Foxtons have issued profit warnings since then.

AFP