"For the manufacturing industry... those capital allowances work, so I would say, we do want to bring down our effective corporation tax, the total amount people pay," Hunt said earlier today in a GB News interview, referring to measures which allow companies to offset capital expenditure against their tax bill. Hunt is due to present his budget on Wednesday. ($1 = 0.8314 pounds) (Reporting by Lavanya Ahire in Bengaluru; Editing by Tomasz Janowski and Mike Harrison)
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March 11 (Reuters) - British finance minister Jeremy
Hunt will hand businesses a three-year tax break worth 11
billion pounds ($13.23 billion) by replacing the UK's investment
allowance with a temporary measure in next week's budget,
Bloomberg News reported on Saturday, citing a government
official with knowledge of the matter.
Hunt will limit the relief to three years and propose a
permanent replacement in the ruling Conservative Party's
manifesto before the next election, the report said.
Under this replacement full-expensing regime, companies will
continue to save 25 pence on their tax bill for every 1 pound
invested, the report said. A previously announced increase in
the headline rate of corporation tax, to 25% from 19%, is due to
come into force in April.
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