Will be lowest in G2 with 5 years to tempt back exile firms

Chancellor George Osborne told the Confederation of British Industry (CBI) he will make UK corporate tax the lowest in the G20 and will tempt back tax exile firms, the Times reports.

Osborne said he would cut corporation tax to the lowest rate across the G20 within five years. He is expected to honour a manifesto pledge to reduce the rate from 28 per cent to 25 per cent in the Budget next month.

That would be the lowest levy since 1965 and well below France and Germany, but it is not clear whether the cut would be staggered or introduced at once, the Times said.

The Treasury will try either to water down or dump an overseas subsidiary levy. Osborne said: “I want to reform the complex controlled foreign companies rules that have driven business overseas. I want multinationals coming to the UK, not leaving.”