The Official - Brexit: Osborne pledges to cut corporation tax

[AtW]

No doubt it will be accompanied by the dividend tax rate going up to 12.5%

Yup, now that after Brexit it will be harder for UK shareholders to move to EU permanently

[jamesbrown]

It's easier now to increase tax on dividends, hopefully not because he already increased it a lot

In my view the Dividend Tax doesn't make much sense w/r to taxing the "right" shareholders. Sure, it catches us and others that they want to catch, but also many, relatively small, investors. I suppose they could increase the tax-free allowance for anyone that isn't involved in running the company. Again, though, it becomes too messy. In due course, I think they're quite likely to develop laws on "moneyboxing" (i.e. retaining income that isn't needed to run the business) and/or a look-through structure whereby company income is paid to shareholders and taxed as ordinary income. There have been noises about this in the FT and elsewhere over recent months and the latter is tried and tested (in other countries). It also eliminates IR35.

[AtW]

They can easily now align dividend tax with income tax rates, keep corp tax 10%+ and that deals with NIC situation, keep tiny divvi allowance - end result is that Britain will be great for business that got foreign shareholders

[diseasex]

Last year i paid only like 12% after all allowances

[Mordac]

Last year i paid only like 12% after all allowances

I didn't realise they had started taxing paper rounds...

[VectraMan]

and/or a look-through structure whereby company income is paid to shareholders and taxed as ordinary income. There have been noises about this in the FT and elsewhere over recent months and the latter is tried and tested (in other countries). It also eliminates IR35.

That's what I'd like to see, especially for those of us with one man companies. And ditch the reporting requirements as well. That's got to be a big boost for anyone looking to start a small or micro business - just run it how you like and pay yourself when you like and put it on your tax return.

Contractors will be against it as it reduces the tax avoidance possibilities.

Re: CT cut:

a) why is Osbourne making statements anyway? Shouldn't he be waiting to see what his future leader wants?
b) Great more government debt heaped onto future generations; it's not as if the young aren't pissed off already at the oldies.
and c) Wasn't Brexit meant to increase business possibilities? It hasn't even got started and we're already having to bribe foreign investors.

[Hobosapien]

Wouldn't he need one of those 'emergency' budgets to make this change?

Start the clock...but make sure it has a year hand and not just days and months.

[GB9]

c) Wasn't Brexit meant to increase business possibilities? It hasn't even got started and we're already having to bribe foreign investors.

Do you mean in the same way that the Irish have done to attract investment?

Perish the thought that we actually do something to help ourselves. How very ungentlemanly of us!

[VectraMan]

Do you mean in the same way that the Irish have done to attract investment?

Perish the thought that we actually do something to help ourselves. How very ungentlemanly of us!

Nothing wrong with that. But imagine if we'd simply stayed in the EU AND done something to help ourselves.

[shaunbhoy]

imagine if we'd simply stayed in the EU AND done something to help ourselves.

Those two things are mutually exclusive.

HTH