Budget 2012: Corporation tax rate to fall to 22% by 2014

The headline rate of corporation tax will be cut from 26% to 25% with a further cut of 1% right away.

From next month, the UK will have a corporation tax rate of 24%, promised chancellor George Osborne, making it considerably more attractive than that which is offered by the UK’s global competitors.

The rate is 18% below the US rate, 16% lower than Japan and 12% lower than France, says Osborne.

The two further corporation tax rates previously scheduled will go ahead as planned, leaving the UK with a 22% corporation tax rate by 2014.