survival fund

Tax Cuts

Chancellor pressured to cut tax in Pre-Budget

Business groups have called for a cut in corporation tax in the upcoming pre–Budget Report (PBR) to help small firms weather tough economic conditions. The Federation of Small Businesses (FSB) has called for next April’s increase of the small companies’ tax rate from 21% to 22% to be scrapped, but the Institute of Directors (IoD) and the Forum of Private Business (FPB) have gone even further. The IoD has asked for a four pence reduction in the main rate of corporation tax and a three pence reduction in the basic rate of income tax for 2009–10, while the FPB has called for the small companies’ tax rate to be cut to 20%. IoD director general Miles Templeman said: “The British economy is facing a unique set of once–in–a–generation challeng... »