Financial Times FT.com

UK Budget, March 21 2007

Giving with one hand, taking with the other

By Vanessa Houlder

Published: March 21 2007 15:02 | Last updated: March 21 2007 15:02

The long-awaited cut in the corporation tax rate, which will be reduced by 2 percentage points to 28 per cent, was hailed as an important step in improving the competitiveness of Britain’s tax system.

But the Budget also created losers in the corporate sector, as the cut in the tax rate was offset by a reduction in capital allowances.

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