Wednesday 5th December 2012
Margaret Stephens, global head of infrastructure tax at KPMG, said:
“It is extremely disappointing that the Chancellor has not listened to the infrastructure industry and looked at the current tax disincentives for investment in buildings and structures.
“The current UK tax system is simply not competitive and businesses which invest in new buildings and structures including gas power stations, roads and other infrastructure will have to pay taxes at much higher effective rates than the new headline rate announced of 21%.”
“Government estimates the rate reduction to 21% will cost £3bn by 2018, whereas putting capital investment in buildings on an even footing with other business expenditure is estimated to cost much less and indeed raise tax receipts through stimulating growth.”
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KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and operates from 22 offices across the UK with over 11,000 partners and staff. The UK firm recorded a turnover of £1.7 billion in the year ended September 2011. KPMG is a global network of professional firms providing Audit, Tax, and Advisory services. We operate in 152 countries and have 145,000 professionals working in member firms around the world. The independent member firms of the KPMG network are affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. KPMG International provides no client services.