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June 1, 2018
The Government should avoid making major reforms to the tax system and instead consider smaller, targeted changes to the tax rules, according to a leading business group.
In a new report, the Confederation of British Industry (CBI) argues that refraining from ‘chopping and changing’ the tax rules any further will help to foster a ‘culture of certainty and stability’.
It suggests that the Chancellor should allow recent reforms to the headline rate of corporation tax, the taxation of foreign profits, and the introduction of the new Patent Box to take effect.
However, the business group did call for several smaller improvements to the tax system, which it claims will boost jobs and infrastructure, whilst improving the UK’s competitiveness in the global market.
The proposed changes include introducing a capital allowance for infrastructure, capping business rates at a minimum of 2%, and cutting employers’ national insurance contributions.
Commenting, Katja Hall, CBI Chief Policy Director, said: ‘The Government has taken action to make the UK’s tax regime more competitive and now needs to let the changes bed down and take effect. Constant chopping and changing of the rules risks scaring off business investors.
‘Some international tax rules also need updating to reflect today’s changing global business environment. But as the UK seeks to shape this agenda it must not crush recent competitive gains. We must coordinate reforms with other countries so UK firms are not disadvantaged’0
June 1, 2018