Conservatives:

• The Conservatives plan to reduce corporation tax to 17 per cent by 2020 (from its current level of 19 per cent).
• They promise to “simplify the tax system” for self-employed people and small businesses.
• They want to conduct a review of the business rates system, make sure that revaluations are conducted more frequently, and explore the introduction of self-assessment to the valuation process.

Labour:

• Labour plans to increase the main rate of corporation tax, reaching 26 per cent by 2020-21, but to reintroduce the ‘small profits rate’ for small businesses. This would apply to companies with annual profits below £300k and would be set at 20%, rising to 21% in 2020-21.
• Labour wouldn’t require small businesses (those with a turnover of less than £85k) to submit quarterly tax returns, which is part of the incoming Making Tax Digital plans.
• They promise a “package of reforms to business rates”, including raising the tax in line with CPI (consumer price index) rather than RPI (retail price index), exempting new investment in plant and machinery from valuations, and providing access to “a proper appeals process.”

Liberal Democrats:

• They’d reverse the Conservative decision to cut corporation tax to 17 per cent.
• They want to reform corporation tax so that the smallest businesses benefit, but the biggest multinationals can’t avoid paying their share. They say they’d take tough action against corporate tax evasion, setting a target for HMRC to reduce the tax gap.
• The Lib Dems want to review business rates, prioritising the development of the digital economy and lessening the burden on smaller businesses. Business rates would be the priority for future business tax cuts.

Source: Simply Business