CBI in tax reform call
The UK tax system is a "ball and chain" around business, the Confederation of British Industry (CBI) has told the government.
Tax reform urgently needed, says CBI" class="imageframe alignright" height="200" src="http://pictures.directnews.co.uk/liveimages/Businessman_sqrd_1455_18501256_0_0_7006212_300.jpg" width="200"/>The UK tax system is a "ball and chain" around business, the Confederation of British Industry (CBI) has told the government.
A radical overhaul of the UK's corporate tax system is needed if the country is to stay competitive, a new report from the association representing British business said.
The report, written by 12 tax experts, suggests a simplified system and a headline rate of 18 per cent.
Richard Lambert, the CBI's director-general, said: "An 18 per cent business rate within eight years would help restore the UK's low tax credentials.
"But a radical shake-up is also vital if clarity, certainty and simplicity are to be reintroduced to the system so firms can plan with confidence and make Britain their long-term home.
"We have all seen the to-ing and fro-ing over capital gains tax (CGT) and non-doms in recent months. Knee-jerk, retrospective change is no way to manage a tax system."
Mr Lambert added: "The UK tax system cannot continue as a ball and chain round the ankle of British business, when it should be a springboard for encouraging growth and attracting investment."
The CBI also suggested: Tax should be calculated on the basis of existing company accounts, scrapping the current system where firms have to maintain two sets of books; more consultation on tax law; an independent tax law commission; and giving smaller businesses a more favourable rate of tax than the bigger multinationals.