Evaluating UK Tax Policy Through the Laffer Curve: Income Threshold Freezes and Corporate Tax Reform

Lakshya Garg

Abstract: This research investigates the United Kingdom?s recent tax policy changes, particularly the freezing of income tax thresholds and the introduction of a tiered corporation tax system. Using the Laffer Curve framework, the study explores whether these measures optimise revenue without discouraging economic activity. It also assesses the impact on investment, migration, and business confidence. Drawing on international comparisons, the paper highlights the delicate balance between tax competitiveness and public finance sustainability. The findings suggest that while current policies yield fiscal gains in the short term, they risk long-term economic drawbacks if not managed transparently and predictably.

Keywords: UK taxation, Income tax freeze, Corporation tax, Laffer Curve, Fiscal policy

How to Cite?: Lakshya Garg, "Evaluating UK Tax Policy Through the Laffer Curve: Income Threshold Freezes and Corporate Tax Reform", Volume 14 Issue 8, August 2025, International Journal of Science and Research (IJSR), Pages: 1206-1210, https://www.ijsr.net/getabstract.php?paperid=SR25812191934, DOI: https://dx.doi.org/10.21275/SR25812191934