Blog | Accountancy Group Wants The UK To Slash Its Tax Rates After Leaving EU
Accountancy Group Wants The UK To Slash Its Tax Rates After Leaving EU
Tuesday, March 27th 2018 7:07pm
An accountancy group has called for the government to slash its tax rates post Brexit so that companies will more easily be able to compete against all the major emerging economies. The accountancy firm UHY Hacker Young said research has shown that the UK`s tax burden is over 75% higher than that of many other countries economies. For instance the UK has a tax burden of 36% of GDP and this is exceptionally high when you compare it with the economies of such as Brazil, Russia, India and China (the BRIC economies) which have an average tax burden of 21% of GDP.
A High Burden Of Taxation
Speaking about what they see as an unfair tax burden on UK companies UHY tax partner Darren Grimes commented in an article in City AM : "Lowering the high burden of taxation could act as a competitive differentiator for the UK post-Brexit.
"A lower tax burden could increase the UK's attractiveness to foreign-based businesses on the global stage compared to other developed nations."
"Developed economies like the UK need to investigate ways of lowering the tax burden for businesses or they may find increasing competition from more dynamic emerging countries.
"Lower personal and business taxes can help economies spur growth and create incentives, particularly for investors and larger, more globally-focused businesses."
Unwilling To Upset The EU
However this does not seem to be a view that is shared by the most important person and that is the Chancellor Philip Hammond. It looks like he is fearful of upsetting the European Union even though the UK is leaving as he has commented that after Brexit they would not want to undermine competing continental economies to attract business worldwide. So it could be some time before the tax burden is reduced for UK businesses.
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