THE CONFEDERATION of British Industry is urging the government give jobs and the economy a boost through a series of targeted changes to the UK tax system.
In its submission ahead of the 21 March Budget, the CBI called for changes to the UK tax system which it believes could help persuade businesses to invest in the UK and stimulate growth.
“The chancellor must use this Budget to score the growth and investment policy goals he put forward in his Autumn Statement,” CBI director general John Cridland said.
“With our economy firmly under the international spotlight, there is no time to lose: Plan A plus must become a reality.”
The CBI’s latest tax proposals include: a new capital allowance to attract investment into types of infrastructure which do not currently qualify; new forms of finance to help companies grow and take on staff; and ways to ensure environmental taxes help to encourage new growth.
“Delivering private sector investment in infrastructure, supporting mid-sized businesses, hammering out the details on credit easing, extending the Youth Contract to 16 and 17-year-olds, and introducing the New Build Indemnity Scheme for mortgages at the earliest opportunity will all provide a real boost for UK growth and jobs,” Cridland said.
“We’re calling on the government to make some targeted changes to the UK tax system, which could make an impact on business decisions and create new opportunities for growth.
The ATT had previously expressed concern that the legislation was overly complex and created unnecessary complications within the practical working of the new allowances
Introduced in 2013 to encourage R&D investment, the scheme allows UK businesses to pay only 10% corporation tax on profits derived from any UK or certain EU patents
Yet, KPMG’s annual survey shows that the UK is still an attractive place to do business, despite falling in rankings in tax competitiveness and FDI appeal
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