The Treasury is drawing up plans to allow British-based multinationals to repatriate billions of pounds of foreign profits tax free, according to reports.
The Treasury is drawing up plans to allow British-based multinationals to repatriate billions of pounds of foreign profits tax free, according to the Financial Times today.
Expected to be issued in the spring, the consultation paper will discuss the options surrounding bringing the UK into line with the rest of mainland Europe which currently does not tax foreign dividends.
Although it is hoped that the reforms will make Britain more attractive for foreign investment and enhance its competitiveness with Bermuda, it is not expected to lead to an overall tax cut for companies. It is also likely that any measures will be accompanied by stringent anti-avoidance laws.
David Gittings, chief executive of the LMA, said that the news was a welcome step by the government in making London a more competitive market. “Some things need to be addressed at a governmental level in the UK and today's announcement by the Treasury is a very good sign. London needs to be competitive with other markets such as Bermuda and if this reform goes through, I think it will be a great step in the right direction.”
