• Register
Return to: Home > News > Tax > Despite debate UK tax regime remains attractive for business: KPMG

Despite debate UK tax regime remains attractive for business: KPMG

Britain maintains its ranking as most attractive tax regime for businesses but gap with rival jurisdictions such as Luxembourg and Ireland is narrowing, according to a survey by KPMG UK.

Sixty five percent of the 102 senior tax decision makers from large UK public listed companies who participated in KPMG Annual Survey of Tax Competitiveness 2013 identified the UK as the most attractive tax regime ahead of Luxembourg (63%), Ireland (62%) and Switzerland (61%).

According to the survey, only 5% of UK companies are actively considering moving to another jurisdiction. This is the lowest percentage since 2007.

KPMG UK head of tax Jane McCormick said: "Our research shows that the efforts that the current and previous governments have made to address anomalies and improve the attractiveness of the UK to business from a tax perspective are bearing fruit."

Nevertheless UK businesses fear that the current debate on tax avoidance will have a negative impact on foreign investments. Sixty seven percent of the UK listed companies and 88% of FTSE 100 decision makers surveyed believe that the debate is likely to reduce investment in the UK.

On the other hand only 10% of foreign owned subsidiaries said they were considering reducing investment due to the tone of the debate and 80% of them said it had no effect.

However with an increasing public scrutiny businesses have endorsed the necessity to be transparent and 75% of tax executives questioned support the general aims of the OECD's action plan to tackle Base Erosion and Profit Shifting (BEPS).

KPMG UK head of tax policy Chris Morgan said: "The challenge for policy makers now is to stick to their guns on their commitment to making the UK the most attractive tax regime in the G20 and the challenge for businesses is to continue to play their part in driving the UK's recovery, creating jobs, making investments and stimulating economic activity."

Related link:

KPMG Annual Survey of Tax Competitiveness 2013


Top Content

    The UK: uncertain waves rule Britannia

    he UK’s accountancy profession is currently in a period of much uncertainty. The Competition and Markets Authority (CMA) has released its review into the listed audit market which could cause the biggest shake-up the profession has seen in years, the Kingman Review has described the Financial Reporting Council (FRC) as not being fit for purpose and called for it to be replaced. All the while the country remains in a deadlock on Brexit negotiations.

    read more

    Views from the Eurozone

    With Brexit looming, populist governments gaining footholds in a number of countries and movements such as the Yellow Jacket protests in France, 2018 was anything but a quite year for the eurozone. Here leaders report to the IAB on their markets.

    read more

    Eastern promise and how to find it

    With China rising as a global power, Jonathan Minter spoke with ShineWing’s Zhang Ke and Marco Carlei at the World Congress of Accountants 2018 in Sydney, to discuss the cultural challenges that occur when Chinese networks look beyond their border, and the dividends available for those who overcome them.

    read more

    Spain: looking to widen demand

    As Spanish accounting professionals prepare for new audit regulations, the Paul Golden asks what they need to do individually and at firm level to maintain and increase demand for their services.

    read more
Privacy Policy

We have updated our privacy policy. In the latest update it explains what cookies are and how we use them on our site. To learn more about cookies and their benefits, please view our privacy policy. Please be aware that parts of this site will not function correctly if you disable cookies. By continuing to use this site, you consent to our use of cookies in accordance with our privacy policy unless you have disabled them.