This will give the UK the lowest rate of any major Western economy, one of the lowest rates in the G20, and the lowest rate this country has ever know.
At the same time we will agree with business a long term approach to the taxation of foreign profits, the treatment of intellectual property and the proposals from James Dyson on research and development.
Small companies tax rate will also be reduced to 20 per cent, which is said to benefit some 850,000 companies.
The Enterprise Finance Guarantee Scheme, which supports SME access to lending, will also be extended for small busines struggling to obtain credit.
Osbourne says this will benefit at least 2,000 small businesses.
Mark Goodwin, RICS director of external affairs said:
“We expect that the reduction in corporation tax rates over the next four years will stimulate the commercial occupier market and the wider economy by encouraging greater business investment."
Tony Bernstein, tax partner at HW Fisher & Company chartered accountants,said:
"The reduced rates of corporation tax will undoubtedly be welcomed by the business community but are likely to have a limited impact, as many companies have reduced profits or realised losses in recent years.
"Self-employed people who do not need to draw all their income for living may consider running their business through a company in order that the profit that is not needed for spending is only taxed at the lower, corporate rate."
