ANALYSIS: Why taxpayers should consider relocating to the UK
08 February 2012
Joe Dalton
Slashing the corporate tax rate, reforming the controlled foreign company rules and blocking plans for a financial transactions tax are just three ways the government hopes to attract multinationals to relocate to the UK. International Tax Review investigates whether these steps will tempt companies to make the move.
A number of UK-based international companies have migrated from the UK to lower tax jurisdictions such as Ireland and Switzerland over the past few years in response to the UK’s uncompetitive corporate tax rate and strict controlled foreign company (CFC) rules, among other aspects.
But the tide appears to be turning.
The UK’s corporate tax rate has been cut from 28% and will hit 23% by 2014.
Reforms to the much maligned CFC rules are on the way and the coalition has made it abundantly clear the UK will play no part in a European financial transaction tax (FTT).
Add to this the fact the UK enforces no withholding tax on dividends, offers capital gains exemption, is not part of the eurozone, has announced plans for a patent box and offers relative certainty in tax planning compared to other jurisdictions, and the UK is once again on...
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