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UK COMPETITIVENESS


Tax professionals have welcomed two government consultations on reforms designed to support innovation and productivity in the UK.

New research suggests that the UK has one of the highest tax burdens for both low and high earners of ‘any major economy’, according to UHY Hacker Young.

The Government has published two consultation documents with the stated aim of supporting innovation and productivity in the UK.

There is a convincing case for reducing the corporation tax rate in Northern Ireland, according to the House of Commons Northern Ireland Affairs Committee.

A Liberal Democrat MP who claims to have monitored the oil and gas industry for 40 years has warned that tax increases could result in a ‘huge loss’ of investment affecting future jobs, export opportunities and tax revenues.

Risks

Responses to consultation sent a ‘strong message’ that applying the proposed tax exemption for overseas branch profits to all territories, and the inclusion of chargeable gains, would enhance the competitiveness of the UK regime, HM Treasury said.

The release of the Vickers report on the future of the UK banking industry makes it opportune to make a few observations on the current taxation policy for the banking sector.

Mike Lomax examines the new approach to tax policy making set out in the Tax Consultation Framework

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