Director general Kelly says review is a missed opportunity

The government has missed an opportunity to stop companies quitting the UK by not exempting foreign branches from tax, ABI director general Kerrie Kelly has warned.

The Budget announced that the government will carry out a review of the taxation of foreign branches, with a view to bringing forward legislative measures in next year’s Finance Bill.

In the run up to today’s announcement, the ABI was pressing for the government to confirm that profits made in foreign branches would not to be taxed when bought back to Britain.

Kelly said:: “This was a missed opportunity to help global businesses operating in the UK. It was particularly disappointing that the chancellor found extra money to help the creative industries sector while delaying yet again any commitment on the issue of profits earned abroad not being taxed if brought back to the UK which is a vital issue for the UK insurance sector.”

“The UK is now lagging behind on areas of corporate and personal taxation at a time when other countries are actively trying to attract businesses away from the UK.”