Quarter of UK SMEs mull tax escape overseas
More than a quarter of UK SMEs are considering relocating overseas to escape UK's tax law changes
According to a Tenon survey of more than 1,000 SMEs, 26% are considering a
move within the next three years, while one in 20 have already made firm plans
to relocate abroad.
Corporation tax was the area of legislation most highly disliked by
entrepreneurs, 37% of those considering leaving Britain citing corporation tax
as the main reason.
Capital gains tax and the abolition of taper relief was the key motivation
for 16% of respondents, while almost half (43%) of those running family
businesses expect tax bills to increase as a result of income shifting
legislation, to be introduced in 2009, 9% claiming they will have to stop
employing family members and 4% believing they will have to close their business
because of its impact.