UK Tax Attractive to Businesses
According to KPMG, the UK’s current tax climate is highly attractive to businesses and is in a good position for attracting large international corporations. However, the way tax issues are covered in the media are reducing the positive effect.
These findings are based on data from KPMG’s annual tax competitiveness report. Respondents, when asked to name their top three countries for tax, named the UK more often than any other country. Stability and simplicity – two areas in which the UK system is perceived to be strong – were often considered more important than a lower rate of tax.
The current and previous governments made a specific effort to make the UK attractive from a tax point of view. Jane McCormick, head of tax for KPMG, points out that five years ago the UK tax system was a deterrent for international firms, but now the situation seems reversed.
However, media coverage is harming the effect this has on international firms. 88% of FTSE 100 companies said this was likely to reduce investment in the UK.