Lower business taxes to encourage multi-national corporations to set up in Britain
As part of his plans for the G8 summit, David Cameron has announced that business taxes are being reduced in order to make Britain a more attractive location for multinational businesses.
This move is the first positive reaction by the British government regarding the involvement of major companies in tax evasion. By legally facilitating businesses operating from Britain the tax regime could both encourage further investment into the country and prevent tax avoidance on such a blatant level.
Changes to the tax system were revealed in the March budget and show the rate decreasing by a significant 4% this year (from 28% to 24%), and a further 3% the following year (24% to 21%). This means that by 2015, Britain could have one of the lowest corporation tax rates in the west.