29 November 2010
Bill Dodwell, head of tax policy at Deloitte, comments
“We believe that the Chancellor’s proposals could have gone much further if the UK is to create better opportunities for multinationals to carry on activities here, instead of in overseas low-taxed jurisdictions, such as The Netherlands, Switzerland, Ireland and Asian hubs, such as Singapore and Hong Kong.
“Although the patent box is welcome, it will apply only to a limited range of activities. Many businesses rely on intellectual property to differentiate their products and services. This can range from high-technology that isn’t patented for secrecy reasons, to software, and to brands. Whilst the UK retains some important non-tax reasons to be based here, the UK’s tax incentives have fallen behind those offered by other European and Asian countries.
“However, some businesses were concerned that interest restrictions could limit one of the current attractions of the UK, and they will be pleased that the Government has decided not to introduce any form of limitation.”
