Date lodged: 5 July 2016
To ask the Scottish Government what impact a 15% rate of corporation tax would have on (a) employment, (b) tax yield and (c) the funding of public services in Scotland.
Answered by: Derek Mackay 27 July 2016
As set out in Scotland’s Economic Strategy, the Scottish Government believes that changes to corporation tax should focus on creating a long-term competitive advantage by using targeted changes in tax allowances to encourage higher levels of investment in capital or research and development and encourage the growth of small and medium-sized enterprises, not through a blanket approach to further reducing the headline rate.
The economic impact of a reduction in corporation tax to 15%, as proposed by the Chancellor of the Exchequer, would depend on the timeframe over which it was implemented, the manner in which it is funded and any accompany reforms. To date, the UK Government has not provided this information