The UK’s tax regime is still one of the most attractive compared to key competitors, according to large business executives in Britain. With respondents naming their top three most attractive countries from a tax perspective, the UK was mentioned the most, although Luxembourg, Ireland and Switzerland are closing the gap. Interviewees include 102 senior tax decision-makers in some of the largest UK listed companies and foreign-owned subsidiaries, surveyed in September/October 2013. 55 percent of the companies interviewed had a turnover of over £1 billion. 32 respondents were FTSE 100 members, 50 in the FTSE 250 and 20 foreign subsidiaries.
Jane McCormick, Head of Tax at KPMG in the UK, said: “Our research shows that the efforts that the current and previous government have made to address anomalies and improve the attractiveness of the UK to business from a tax perspective are bearing fruit.
“Policymakers recognise that business is a powerful growth engine, creating jobs, wealth and generating economic activity. The dial seems to have moved on the UK’s tax regime from it being an actual deterrent to business and economic activity just five short years ago when some PLCs were emigrating, to it now being positively attractive, especially when viewed in the context of the UK generally being seen to be a very desirable place to live, work and do business.
“Even better, the results suggest there is no need for a ‘race to the bottom’ on rates with few respondents calling for further rate cuts.”