Corporation Tax

Treasury written question – answered at on 21 November 2018.

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Photo of Andrew Rosindell Andrew Rosindell NATO Parliamentary Assembly UK Delegation, Co Chair, British-Irish Parliamentary Assembly

To ask the Chancellor of the Exchequer, what assessment he has made of the effect of lowering the rate of corporation tax on corporation tax receipts since 2017.

Photo of Mel Stride Mel Stride Financial Secretary to the Treasury and Paymaster General

The OECD has concluded that corporation tax is the most harmful tax for growth and productivity.

In April 2017, the corporation tax rate was reduced from 20% to 19%. This is the continuation of this government’s reduction in the rate from 28% in 2010.

Lower corporation taxes can result in increased profits, wages, employment and consumption that all feed through into higher tax revenues that support our vital public services.

Despite the rate cut in 2017, the onshore corporation tax revenues have increased from £53.6 billion in 2016-17 to £56.1 billion in 2017-18. Since 2010, onshore corporation tax revenues have increased by 55%.

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