Major parties oppose corporation tax devolution

The three major UK political parties agree that corporation tax should not be devolved to Scotland to avoid the risk of a “race to the bottom”, the Financial Times reported after the UK government published the parties’ proposals for devolution of further powers to the Scottish Parliament.

Last month David Cameron established the Smith Commission, chaired by Lord Smith of Kelvin, to facilitate talks on the devolution of further powers. Responding to the prime minister’s announcement of plans for powers over tax, spending and welfare to be “agreed by November”, the Chartered Institute of Taxation called on politicians to confront “the crucial question” of how much tax competition they were willing to entertain within the UK.

Read more at AccountingWEB.