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Could Outcome Of Election Lead To Big Name Limited Companies Returning To UK?

I’ve been looking into the reactions from UK companies recently with regard to the possible outcome of the forthcoming General Election.  Business leaders across the country are wondering which party could provide us with the best chance of bouncing back after the recent recession.

One interesting thing that has come to my attention recently is the situation regarding businesses that have moved some or all of their company abroad.  The WPP Group plc is one such example.  According to reports I have read in the last day or so, this business was previously based in the UK but is now taxed as a business in Ireland.

The reason for this is due to the tax that is now charged by the UK government on profits made abroad.  No one wants to pay more tax than they need to, but in this case had WPP Group plc remained in the UK they would have racked up figures in the tens of millions of pounds.

I have my own ideas on who to vote for in the coming election.  But British born limited companies provide jobs and revenue for this country.  I do question the logic behind bringing in a taxation rule that drives some of the biggest employers away.  I can understand the government wanting to bring in more revenue by raising taxes – this is a ploy almost as old as time.

But in reality I would rather have a government that encourages businesses to grow and develop here in the UK.  By trying to tax foreign income the government effectively opened the doors for businesses who could afford to do so to leave.  I wonder if they will be making plans to return after the 6th May?  If you need accountancy advice about your own company, call us here at St Matthew today.


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