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| Business tax reductions 'may not tempt offshore companies home' |
The business-friendly measures announced in George Osborne's Budget this week are unlikely to encourage a raft of offshore companies to return to the UK, it has been claimed.
Earlier this week, the chancellor announced that the main rate of corporation tax will fall from 28 per cent to 24 per cent over the next four years, while the small business rate will be reduced by one percentage point to 20 per cent.
In his Budget statement, Mr Osborne also announced that entrepreneurs will largely be shielded from the rise in capital gains tax to 28 per cent.
However, writing for the Independent, James Moores claimed that company directors may be inclined to remain in jurisdictions such as Jersey and Guernsey for the sake of personal offshore tax planning.
He commented: "While businesses have done remarkably well out of a bruising Budget, the directors that run them have been rather less fortunate. That 50 per cent rate is likely to be with us for some time to come."
And when directors come to review questions of domicile, "they are just as likely to consider their personal circumstances as they are those of companies they run", Mr Moores claimed. |
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