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Cuts to corporation tax and business rates worth £11bn in the coming financial year have been implemented this week.
Corporation tax has been cut by 2 percentage points to 21%, and will fall to 20% this time next year. Overall the tax has fallen from 28% in 2010.
The annual increase in business rates will be capped at 2%, and the small business rates relief is extended for a further year. According to the government this means the smallest businesses pay reduced rates, and over a third of a million will pay no rates at all.
There will also be a £1,000 discount for retail properties.
The employment allowance will also come into effect next week, which will represent a £2,000 cut in employer national insurance contributions.
The changes will see the biggest cuts to business tax for twenty years, the government said.
“The government is backing business, which is vital for the UK economy to grow and create jobs,” said Chancellor George Osborne.
“The tax changes taking effect will reduce the cost of employment, ease the tax burden on businesses and stimulate investment. Since 2010, we have cut all major business taxes and the reforms we are delivering are already having a positive impact on the UK’s competitiveness.”
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