Firms fear UK risks losing tax competitiveness

 
Tim Wallace
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BRITAIN’S tax system has become more competitive over the past five years, but moves to change the way international companies pay tax could undo some of that good work, analysts at EY said today.

The professional services firm’s survey found that 68 per cent of businesses believe the tax system has become more competitive under the coalition. And 89 per cent praised the lower rate of corporation tax.

But there are threats to that improved position.

The study of finance and tax bosses finds 59 per cent are worried that the system is too complicated, while 46 per cent are concerned about uncertainty doing harm, and 33 per cent fear there will be knee-jerk reactions to the debate around fair taxation.

“While the business community now knows that the deferred profits tax is here to stay, the lack of detail surrounding its implementation seems to be raising red flags and risks threatening the UK’s competitiveness,” said Chris Sanger from EY. “Businesses have issued a plea for the necessary stability that will allow them to take informed decisions and press ahead with their investment plans.”