Budget 2016: Osborne announces corporation tax cuts for small businesses

Aims to cut to 17% by 2020

In today's Budget, chancellor George Osborne announced he will raise the corporation tax threshold, allowing 600,000 small businesses to be exempt from paying business rates.

In his eighth Budget as Chancellor of the Exchequer, Osborne (pictured) said he is more than doubling small business rate relief permanently as he believes "business costs are the fixed costs that weigh down many small enterprises". The tax threshold for small businesses will be raised from £6,000 to £15,000, and for higher rate payers from £18,000 to £51,000. This will mean 600,000 small businesses will pay no business rates at all from next year, saving them £6,000. The headline rate of corporation tax is currently 20%, but Osborne aims to cut this to 17% by 2020. Budget 2016:...