Clampdown on tax evaders
A clampdown on big companies exploiting loopholes to avoid paying tax has been supported by Mark Lancaster MP.
The defence minister welcomed news this week that reforming the business tax system will pay to help boost small businesses and enterprises.
The government will introduce a cap on interest deductions so that firms don’t over-borrow in the UK to fund activities elsewhere.
It will change rules to stop companies using complex structures to avoid tax anywhere or who deduct the same expense twice and will strengthen the withholding tax on royalty payments to stop firms shifting money to tax havens.
The move is expected to raise an extra £9billion for the Treasury.
Mr Lancaster, MP for Milton Keynes North, said: “This Budget demonstrates the government’s commitment to build on our positive record of supporting business and enterprise.
“These initiatives will allow MK to continue to attract even more business start-ups, meaning more investment, more jobs and more prosperity in the local area.
“But for these initiatives to work, taxes must be paid. I was therefore reassured by the clampdown on corporate tax avoidance, something I know also concerned many constituents.”
It was also announced that small businesses will benefit by the threshold for small business tax relief being raised from £6000 to £15,000, which is expected to benefit over 600,000 businesses.
Corporation tax will also be reduced further to 17 per cent by 2020, supporting job creation in more than a million firms across the country.