Doubling of tax receipts to over £100bn is equivalent to putting the Corporation tax rate up to just over 33%, says Heather Self, a partner at leading accounting and tax advisory firm Blick Rothenberg.
She added: “ The combined effect of Labour’s proposed tax increases on business, including such items as the Financial Transaction Tax and changes to R&D tax credits, would result in a near-doubling of tax receipts from companies to over £100bn.
“This is the equivalent of putting the corporation tax rate up to just over 33% – a rate last seen in the 1990s”
Total CT receipts 2018/19 per HMRC figures £55bn, the firm found.
That is at 19% so adjust that for an estimated £2bnper 1% cut (Labour figure for 2020/21) £4bn, giving expected receipts for baseline of £51bn at a rate of 17%.
Labour increase to CT to 26% produces £23.7bn in 2023/24 i.e. an implied amount of £3.4bn per 1% change in the rate.