Another week on and what have we learnt about the post-Brexit world? Well in truth not a lot as everything is in limbo even if the Conservative leadership election looks as though it is going to be settled earlier than expected. Rumours and counter rumours swirl around but a few gems have emerged from the mist.
Firstly a report from the think tank Centre for Cities has revealed that London accounted for 30% of the UK’s tax revenue in the 2014/15 tax year. That’s a growth of 25% in real terms over the last ten years, a figure which has left other cities floundering in its wake. For example, in the same period Manchester’s tax intake grew by only 1%, this despite the fact that it has been the focus of a number of initiatives including the transfer of some BBC departments including sport and children’s programming from London.
What the effect of the Chancellor’s proposal to cut corporation tax to 15% will have on the tax intake across the country is yet to be seen (if indeed it comes to fruition) but it could make businesses think further about incorporating, despite the change in the taxation of dividends which came into effect in this tax year. Indeed, some commentators are speculating about whether a further adjustment of dividend taxation rates may be required should corporation tax be lowered.
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