UK’s tax environment attracts foreign investment
Monday February 1, 2010
The UK’s VAT rates play a part in attracting investment from a range of multinational firms around the globe.
According to Tony Dolphin, senior economist at the Institute for Public Policy Research, the UK’s government policy of keeping corporate taxes down and making it easy for foreign firms to operate in the country makes Britain an attractive place for international firms.
He added that other factors such as language have also played a crucial part in making the UK a favourable destination, although the economic downturn has stemmed the flow of incoming businesses.
“Over the last couple of years of recession the whole level of this type of activity has just dropped off,” Mr Dolphin said.
“As confidence grows, trends in this area will pick up again and when it does, the UK needs to be as competitive as it was back then before the recession.”
HM Revenue and Customs recently unveiled new fines, set to come into force on April 1st 2010, for non-compliance of VAT rules.