US investors will now only have to pay a 15% tax rate on dividends from UK companies compared to the 32.5% their UK counterparts are facing. According to BDO, the danger is that this favouritism will deter investors in the UK.
Stephen Herring, tax partner at BDO said that it did not make sense that a UK investor choosing to buy shares in a local company would be forced to pay twice as much tax as an individual in the US.
He said: ‘This discourages a UK investor from putting money into equities because the returns are taxed so heavily.
‘The chancellor is facing an investment crisis after the stock market falls of the past year and desperately needs to review the tax regime’
Crowe Clark Whitehill , the top 20 accountancy firm, has announced the promotion of Chris Mould to partner
The latest opinions from Accountancy Age on Making Tax Digital, and outline plans to evolve the UK's corporate governance regime
Five million taxpayers are ow using digital personal tax accounts (PTA) as part of the making tax digital strategy, HMRC said
UK-based non-doms have paid ten times more tax than the average taxpayer, raising concerns over the Brexit impact on non-dom contributions and therefore, the economy