Cut corporation tax for SMEs, says Saatchi » SMEInsider

Cut corporation tax for SMEs, says Saatchi

The Chairman of the Centre for Policy Studies (CPS), Lord Saatchi, has called on the Conservatives to scrap corporation tax on smaller businesses in a bid to make them more competitive.

In a “call to arms” published in the Daily Telegraph, Saatchi points to what he describes as the dangers of global “cartelisation,” whereby a small number of powerful international conglomerates are able to dominate the market. For SMEs to challenge these, says Saatchi, there needs to be a dramatic overhaul of how they and their funders are taxed.

Citing research by the CPS, Saatchi recommends cutting corporation tax entirely for companies with under 50 staff – 90% of all businesses in the UK – and abolishing Corporate Gains Tax (CGT) on investments in SMEs. These measures, the CPS claims, will not only lead to higher revenues for the Treasury in the long term, but will encourage entrepreneurship, boost employment and create a sense of autonomy and opportunity amongst the UK business community.

“These individuals will enjoy the opportunity to say: ‘I am the captain of my ship,’” said Saatchi. “It will mean more money for them – and the first step on ‘the road from serfdom.’”