So this year, what would I do if I was chancellor? Other than the standard inflationary increases for thresholds and duties, I would do very little that changes the tax system. Of course, I would listen to the ICAEW’s recommendations on simplification and think how I can start consulting on these in the medium term.
The one area where I would focus is on competitiveness, and in particular the City of London. Six months ago, the City was riding high. The prevailing message was that it was better for companies to list in London than New York. Now that has disappeared. A colleague of mine, just returned from Malaysia told me that the perception from south-east Asia is that the UK has become business unfriendly over the past few months - and whether that is right or wrong in reality, it is the perception that counts. People I talk to are openly questioning whether or not they should be based in London or should move themselves and their corporate headquarters to more favourable climes.
Wednesday’s budget will be the only chance the Chancellor has to reverse this – to leave it will be too late.Post your commentsComments
The Pratice Society Alert of 14 April took me to your March Blog.
Well the chancellor did not take a lot of notice although he did defer the income shifting proposals for a year (mainly because they were unworkable) to allow time for further consultation.
The Non-Dom proposals were watered down but still create a vast amount of complication. It is still a work in progress. What a way to encourage investment into the UK when the remittance rules will tax inward investment to the UK!!The draft finance bill 2008 at some 430 pages and explantory notes at 1148 pages dont exactly point to simplification!
The debate on the UK tax system and a simpler more user friendly set of laws has a long way to go!
Peter D Tucker