Note the new corporate tax rate of what is in effect 8% for UK-based multinationals which means, incredibly, that multimillion-pound concerns will pay less tax than people earning £7,500 a year.
No love, it means that multi-nationals will be paying a lower tax rate than people earning £7,500 a year.
And if we want to get complicated we would say that the corporation will be paying a lower marginal tax rate, a higher average tax rate, and all of this only on money that is offshore and remains offshore. Money that is brought in to pay out to shareholders as dividends will still be taxed at 24%: which is, as you\’ll note, higher than the 20% rate applied to lower rate income tax payers. And higher rate taxpayers will still pay the higher income tax rate on those dividends they receive.