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Corporation Tax is to be lowered by a further percentage point from April 2014 to help encourage further small business growth across the UK.

The measure - which will see the rate fall to 21 per cent - was announced by Chancellor of the Exchequer George Osborne in today's (December 5th) Autumn Statement as he looked to show how the government is helping with business growth.

While the main rate of Corporation Tax has fallen from 28 per cent to 24 per cent under the current government - and soon to drop lower to 22 per cent - Mr Osborne said that he is keen to change it to "the lowest rate of any major western economy".

"It is an advert for our country that says: come here; invest here; create jobs here; Britain is open for business," he explained.

Mr Osborne also announced plans to scrap the previously planned 3p Fuel Duty rise, which would have been introduced in January.

Posted by Thomas Fletcher

Date published 5 Dec 2012 | Last updated 5 Dec 2012

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