Corporation Tax

(asked on 12th April 2021) - View Source

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment he has made of the effect of a global minimum tax rate of 21 per cent on revenues under the corporation tax charge in 2022-23.


Answered by
Jesse Norman Portrait
Jesse Norman
This question was answered on 20th April 2021

The UK has been at the forefront of global efforts to update the international corporation tax framework in response to challenges created by digitisation.

The UK played an active role in helping to develop a comprehensive two-pillar solution. This would ensure countries can more effectively tax businesses that participate in their economies as well as require multinational groups to pay a minimum level of tax on profit they generate in jurisdictions in which they operate.

The UK also played a leading role in securing a G20 commitment to reach political agreement on such a solution by mid-2021, and is now using its G7 Presidency to help deliver on that objective.

The details of a political agreement are still subject to international negotiation and it would not be appropriate to provide a detailed impact assessment or to comment on specific provisions.

If and when a global solution is agreed and implemented it will be assessed through the OBR forecast process in the usual way.

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