Corporation Tax Reform in UK To Create 'Competition' - One rate is under ours!

robut

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Corporation Tax Reform To Create 'Competition' - UK National News

"The ( UK ) Government has published details of its Corporate Tax Reform programme consisting of a series of essential reforms designed to improve the UK's tax competitiveness. Measures include the introduction of new Controlled Foreign Company (CFC) rules and a commitment to introduce a Patent Box."

- Corporate Tax Road Map that commits to principles that will underpin these reforms and a clear timetable to deliver these changes, including how the Government will engage with business at each stage of policy development

- Details on how the Government will reform the UK's outdated Controlled Foreign Company (CFC) rules by introducing more targeted rules in 2012 and how they will apply to financing and intellectual property. As a first step to make the rules more competitive, a package of interim improvements will be introduced in 2011

- Introducing a Patent Box in April 2013 - a 10% CT rate on profits from patents, reaffirming the Government's commitment to retain and build on the existing Research and Development (R&D) tax credit scheme to create the right environment for innovative companies to prosper

- A commitment to legislate an opt-in exemption for profits earned in foreign branches of UK companies in 2011. Under this more territorial approach, companies in the new regime will no longer be subject to UK CT on their foreign branch profits


Glaxo in UK jobs boost as tax breaks dished out to multinationals - Leadership, business and management news, tips and features from MT and Management Today magazine

"Some nice PR for GlaxoSmithKline: the pharma giant was singled out by Chancellor George Osborne during his autumn statement yesterday after promising to create about 1,000 new jobs as a result of the Government's new 'patent box' proposal, which will slash the rate of corporation tax charged on profits earned from UK-held intellectual property."


How will this impact on us? Will this PATIENT BOX Rate at 10% cause flow of Pharma FDI over the Irish Sea, back to UK?

Robut
 


Barnacle

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How will this impact on us? Will this PATIENT BOX Rate at 10% cause flow of Pharma FDI over the Irish Sea, back to UK?

Robut
Will definitely have an affect on us particularly as we are abolishing our Patent Exemption. This will have a big affect on our multi-national. Our Patent Income Exemption was the sacrificial lamb for retention of our Corporate Tax Rate.
 

Old Mr Grouser

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Squire Allworthy

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Expect more of this from the UK. This government is determined to create a competitive tax regime for business.

The moves are clever and targeted. CT is also reducing year on year and you may see further developments on this next year.

It is worth noting that Civil Service job losses in the UK will be less than originally expected. (greater savings in benefit cuts) Will this give greater scope for the transfer of resources from public to private sector next year?
 

Mitsui2

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Our Patent Income Exemption was the sacrificial lamb for retention of our Corporate Tax Rate.
Was this the cost of the bailout contribution from the UK? If so, clever. As Squire A. says - targeted.
 


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