The CBI (Confederation of British Industry) has raised concern to the UK government about the current volume and unpredictability of new tax measures.
As it unfolds, the CBI is asking the government to reconsider its 2010 tax policy making principles, stating that developing tax policies needs a longer period of time than a yearly cycle.
The CBI comments on the unfavourable restrictions on corporate tax relief for goodwill, which were introduced in the summer Budget, creating confusion for multinational businesses looking to move their activities to the UK. A change to tax regulations for companies with offshore finance operations were also undermined instead of a regime that was working well.
‘We were disappointed that neither of these measures received a consultation, nor was the rationale for change adequately explained. Big ticket changes as the department deserved a proper consultation to ensure the legislation met its policy intentions. In its absence, businesses will be left to interpret widely drawn legislation and rely heavily on guidance, with the accompanying uncertainty denting perceptions that the UK is a good place in which to do business.’
– A spokesperson on behalf of the CBI stated.
As the organisation continues, it says that it is time to review the full range of taxes facing businesses, not only corporation tax which has been cut several times in recent years.