UK corporation tax cut to cost billions more than thought

New HMRC forecast means 2% cut in rate to 17% will now cost Treasury 6.2bn in lost revenue

The government's planned cuts to corporation tax look set to cost the public purse billions more in lost revenue than previously thought, according to new analysis.

The tax rate on company profits is slated to be cut from its current level of 19% to just 17% by the end of the decade. But even before the planned cuts, the UK already had one of the lowest corporation tax rates in the developed world.

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