Tax stability underpins UK's competitiveness

Tax policy will be crucial in shaping the relative competitiveness of the UK
in financial services, a new report shows.

The Financial Services Global Competitiveness Group’s report says the UK can
only continue to provide an attractive location for international financial
institutions if it maintains a stable and competitive tax system.

The industry group has been examining medium and long-term challenges to
London’s success as a financial services centre since June 2008. It is
co-chaired by Chancellor Alistair Darling and former Citigroup Chairman Sir Win
Bischoff.

The report found that a stable and effective tax regime needed to have
certainty and simplicity, as well as ensuring a broad tax base. The industry
should move away from a ‘binary discussion on tax rates,’ it added.

Bischoff told
Tax
News that he considers recent capital gains tax reforms to have been
destabilising to the UK tax system.