UK to Be Lowest Corporate Tax Base after EU Brexit
The UK Prime Minister, Theresa May, announced in a speech on 25/9/18 in New York that the UK will be the lowest Corporate Tax Rate G20 Country after EU Brexit as an attraction to overseas companies and expats looking to establish a UK business base.
The UK’s current corporation tax rate is 19%.
After the end of any Withdrawal period from 2020/21 the UK corporation tax rate is scheduled to fall to 17%. There is allot to happen before we get there….
This statement tells us 2 things.
What this statement tells us is that the UK November 18 Budget is unlikely to increase corporation tax, and the reduction to 19% wont be reversed.
Plus it is further statement of the UK hard line position, sticking to their guns on a potential Withdrawal Treaty, one which the EU rejected out of hand.
The Global average corporation tax rate is 24.0%.
The EU average corporation tax rate is 19.48%. However this is skewed by very low corporation tax rates in Cyprus and Ireland at 12.5%. Making countries like Cyprus an ideal base for a UK branch office ‘in the EU’.
Business Solutions For Brexit
EU Brexit for Expat business will bring changes, but the world will go on. There will be winners and losers, but change whether there is Brexit or not, a Withdrawal Treaty or not.
British Expat business can continue trading in the EU by opening just one branch or company in an EU company, if they need to export with many countries within the EU.
EU Expat businesses can register a branch or UK company in the UK, and continue to trade within the UK, under rules identical to the EU on Brexit date 29/3/18.
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