UK Tax regime

[Liquid validity]

So here we go again, more interference.
Banks seek ways to mitigate European bonus curb | Reuters

Likely as not they will find a way around it or relocate.
Thats not really the point though.
Corporation Tax is another case in point, several stores recently of
starbucks, google, amazon etc.

When will they realise the UK needs to lower corporation tax to compete
with other tax jurisdictions.
Then there is the whole transaction tax debate...
Thoughts?

 

[robster970]

Don't you think this is all rhetoric to make people think politicians are doing something? Seriously, nothing has changed in the last 5 years has it?

 

[wackypete2]

Don't you think this is all rhetoric to make people think politicians are doing something? Seriously, nothing has changed in the last 5 years has it?

If we knew it was just rhetoric then we needn't worry. Unfortunately, sometimes it turns into some poorly conceived plan that falls flat and ends up costing taxpayers.

Peter

 

[robster970]

I struggle to see past it being rhetoric chaps. Ultimately I don't think the corporation tax is going to be raised as this would stiffle investment and I suspect the UK government knows it would be on a hiding to nothing in this area. What they can do though is react through implementing populist but largely irrelevant policy like curbing pay knowing full well that the finance sector will just find a way around it.

This way they look like they are doing something but know that the net result is still the same level tax revenues.

Stealth tax on UK nationals is awful though outside of PAYE or tax on dividends if you are remunerated through a corporate entity.

 

[Liquid validity]

I agree rob, increasing corp tax is a bad idea, I was thinking they should reduce corp
tax to compete with rep of Ireland for instance
(google and Microsoft based there due to corp tax rates).

Much of it is just a case of appearing to do something as you say.
I personally think unless they reduce corp tax to compete directly,
draconian measures to increase tax receipts are likely to cause
more attention to be paid to the financial sector sooner or later.

All this when the UK should be positioning itself to take advantage
of a likely EU trans tax...
Although its probably fair to say a way around most legislation will be found simply
due to most financial institutions wanting a euro office for timezone reasons.
Hastily typed as I'm pushed for time right now.