"Osborne provoked a storm of consternation in July when he announced plans to reduce Corporation Tax from 20% to 18% by 2020, whilst simultaneously slashing welfare spending. Osborne argued that the cuts to corporation tax, which he’d already reduced during the previous Parliament, would encourage investment and create jobs.
The Resolution Foundation points out that a reversal of this policy, as well as dropping the planned increase in the Inheritance Tax threshold would save £3.4bn by the end of the Parliament and would mean Osborne could drop his plans to raid the pockets of some of the UK’s poorest households.
Interestingly, the cuts to corporation tax directly benefit Osborne’s family business, Osborne and Little, in which the Chancellor holds shares. That is, it would be of benefit if the company actually paid corporation tax. According to Private Eye, the corporation has managed to avoid the tax for the last seven years, despite profits of nearly £200million. The corporation even received a tax credit of £12,000 of public money in 2010.
Sadly, draft legislation to tackle aggressive tax avoidance has been pushed back due to ‘complexity’, and won’t feature in the Autumn Statement."
From Real Media, the News You do Not See.
Doesn't look like he will keep Corporation Tax at 20%, or tackle tax avoidance. Why should he when he will benefit in the long run. Hadn't realised that the family business had paid no corporation tax for seven years.