Govt’s tax reform threatens all UK business

Pamela Greener, a partner at
Bentley Jennison
in Leeds, and former head for GE’s UK operations, warns the
government’s proposed tax reform will endanger every UK business, regardless of
whether they have overseas interests, and could lead to more companies moving
their headquarters abroad for tax purposes.

‘If the UK wants to be in the international premiership of holding company
regimes, it needs to exempt foreign profits from taxation. Businesses won’t
choose us when they can choose Ireland or the Netherlands who do exempt foreign
dividends,’ she told the Yorkshire Post.

She warned the government’s proposal to introduce new restrictions on
interest deductibility as revenue protection measures to support dividend
exemption would backfire.

‘It is throwing in with (dividend exception) proposed restrictions on the
deductibility of interest for tax purposes. This isn’t just interest paid by
companies receiving overseas dividends, it’s interest paid by any company and so
potentially affects everybody in the business community.’

Further reading:

Hold off on overseas exodus, firms warned

the Yorkshire Post story

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