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UK may cut corporation tax to 10% if EU blocks trade deal

Rate will be cut from present 20% amid fears of EU blocking UK from accessing its markets

Kylie MacLellan  |  London 

Britain could slash corporation tax to 10 per cent if the European Union refuses to agree a post-Brexit free trade deal or blocks UK-based banks from accessing its market, the Sunday Times reported, citing an unidentified source. The newspaper said the idea of halving the headline rate from 20 per cent had been put forward by Prime Minister Theresa May’s advisers amid growing fears other EU member states will take a hard line in Brexit negotiations. The tax cut would be used to try and persuade the EU to grant “passporting” rights for financial services firms to continue ...

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First Published: Sun, October 23 2016. 23:30 IST