Speed Read: The Conservatives have announced a proposal to reduce the corporate tax rate to at least 25% if they get elected. As a headline, this sounds like a winner but the reality depends very much on how it is funded. If the reduction were introduced and corporate tax revenues allowed to drop, this could boost investment into the UK. However, if the changes are, as expected, to be funded by changes to the tax base then there could be some real losers. No detailed proposals have yet been released but speculation is that changes to the R&D credit, capital allowance and interest deductibility rules are being considered.
