UK corporation tax one of world's highest

Corporation tax rates in the UK are some of the highest in the world, a study has revealed.

Research by KPMG has found that worldwide rates have fallen by an average of 0.9% to 25.9%, leaving the UK with some of the highest corporation taxes on the planet.

Despite a 2% cut in corporation tax this year, at 28% the UK still charges significantly more than the global average.

Chris Morgan, KPMG head of international corporate tax in the UK, said: "The challenge to the UK authorities is to find a way to improve the country's tax competitiveness that is genuinely revenue-neutral."

"The only way to find an acceptable solution is for all parties to really engage in the debate."

For the first time since 1994, no countries increased their corporate tax rates this year, with the EU's average rate falling 1% to 23.2%.

It was recently announced that a number of City law firms would be working with HM Revenue and Customers in order to identify tax evaders.