Taxation policy impacts upon business in a number of complex and interrelated aspects. There are, however, some overarching themes which the government needs to consider when considering potential tax reforms. Firstly, it is vital that UK taxation policies, rates and reliefs are competitive with other globally leading competing economies to secure inbound foreign direct investment by multinational corporations and to encourage entrepreneurs to start-up and scale-up businesses in the UK.
Secondly, taxes should be fair, certain and simple. Fairness includes the need for them not to be confiscatory or disincentivising. Certain means that wholly abusive artificial tax avoidance should not succeed but authentic tax planning should be protected and, indeed, welcomed by government. Simple means that tax laws should be consistent, reliefs should be easy to identify and claim and that the interfaces between taxes should not lead to an excessive tax burden upon businesses or individuals.
We always engage with the relevant HM Treasury Ministers and HM Treasury / HM Revenue & Customs Officials on behalf of our members and respond to all related consultative documents including the run up to key events such as the Chancellor’s Annual Budget. We are also active participants in broader debates about taxation policies and reforms coordinated by the leading professional bodies and think-tanks.