Cut deeper than the 1% previously indicated
The UK government will cut corporation tax by 2% in April, a bigger reduction than the previously announced 1%.
Announcing the 2011 Budget, UK Chancellor George Osborne said that following the cut, the UK corporation tax would be the lowest in the G7.
UK corporation tax currently stands at 28%.
Osborne also announced that he was taking forward what he described as the "fundamental reform of the complex rules" governing the taxation of UK based companies' foreign profits.
And, he said, as part of a wider package designed to reduce red tape for businesses, that the Young review's recommendations on health and safety will be implemented in full together with a restriction on no win, no fee agreements.
Elsewhere in the Budget, the Chancellor also cut the growth forecast for the UK in 2011 to 1.7% from 2.1% because of higher inflation and the shrinking of the economy at the end of last year.
