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Oral question asked in the House of Lords, by Baroness Noakes (Conservative). It was answered on Monday, 15 October 2007.

Taxation: Corporation Tax

Question
My Lords, the Government have belatedly reduced the headline rate of corporation tax to 28 per cent, but that is still only around average for the OECD and has done nothing to restore our international tax competitiveness. Do the Government accept that there are sound arguments for the UK moving to lower rates of corporation tax that will lead to increased yields?
Answer

My Lords, I am somewhat surprised that the noble Baroness does not recognise the significance of the reduction in the rate of corporation tax. It makes the British corporation tax rate one of the lowest in the OECD. Only Germany has as low a rate, at 28 per cent. When the rate was 30 per cent, the Opposition clamoured for a reduction. It has now been reduced to 28 per cent, and I would have expected just a little greater generosity from the other side, although I might have been looking in vain.

Secondary information

Type
Oral question
Reference
695 c523 
Session
2006-07
Oral question type
Supplementary
Chamber / Committee
House of Lords chamber
Related items
Taxation: Corporation Tax
Monday, 29 October 2007
Written questions
House of Lords
Notes
Answer corrected by a personal statement on 22 October 2007 at 695 c845.
Subjects
Corporation tax
Link
View this Oral question on www.publications.parliament.uk