Corporation tax: 'race to bottom' may be ending after 40 years – here's why it never made sense
- Written by Malcolm James, Head of Accounting, Economics and Finance, Cardiff Metropolitan University
It may seem scarcely believable to younger generations that in 1981 the statutory rate of corporation tax in the UK was 52%. Certainly, generous tax reliefs meant that the tax base was relatively narrow and the effective rate was therefore rather lower, but it’s still an eye-watering number compared to nowadays. By 1997, at the beginning of...