UK woos corporate investment with tax breaks in latest budget

[LONDON] United Kingdom (UK) Chancellor of the Exchequer Jeremy Hunt presented a “budget for growth” to boost business investment, productivity and employment. While raising headline corporate tax rates, his budget offers tax breaks for investment.

Hunt’s decision to raise taxation from 19 per cent to 25 per cent for companies earning more than £250,000 (S$407,000) defies pleas from Conservative members of parliament and the Confederation of British Industry, who fear that the higher rate will deter the much-needed foreign investment in the UK.

Countering this criticism, he claimed that only 10 per cent of British companies would pay the higher rate of 25 per cent.