July 5th, 2017 / Insight posted in MKS Comments

Andrew Constable comments on the falling corporation tax rate

“With a falling corporation tax rate, companies may be inclined to accelerate planned expenditure so that they are able to claim relief against their profits at the 19% rate before the rate reduces to 17% in April 2020,” says Andrew Constable, partner at Kingston Smith. “At present, the benefit of doing this is only 2%, but if the US reduces its corporate tax rate to 15% and the UK follows suit, the 4% saving may have a greater impact on large corporates accelerating their expenditure.”