SPEED READ Corporate tax reform is a key objective of the coalition Government, to promote economic growth. We should expect a Discussion document by early autumn, with a view to legislating reforms in 2012. The down-payment is a reduction in the main rate of corporation to 24% by 2014 and the small profits rate drops to 20% in 2011 – albeit that capital allowances are reduced from 2012. Foreign branch reform is fast-tracked to 2011, but CFC reform (apart from some improvements to the current rules) joins the main process. The aim is to encourage companies to come to the UK, not leave the country.
