Prime Minister Gordon Brown yesterday acknowledged the corporate anger over the latest tax increases, promising to cut corporation tax further, in a second attempt to stem the exodus of UK companies abroad.
‘The dialogue I agree can be better and will be better,’ he told the Institute of Directors annual conference and promised the tax review announced last Tuesday could ‘look at all aspects’ of the regime.
He rejected a suggestion that last month’s increase in capital gains tax and levy on non-domiciled foreigners was proof business was lower on Labour’s list of priorities. 'Our aim, I tell you, is to reduce corporation tax even further when we can afford to do so. I want to go further and we’re looking at how we can do it,' he said.
International Power is the latest multinational to consider moving its corporate headquarters away from the UK because of dissatisfaction with the tax reforms, while Aegis and ITV are also watching developments, according to the Financial Times.
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