The Chief Secretary to the Treasury, Danny Alexander, visited Bloomberg's headquarters in Manhattan, New York, on Monday. In a speech he said, "there has never been a better time to invest in the United Kingdom". Citing the UK's lower corporation tax rate of 21% (due to fall to 20% in April 2015) he declared, “If you invest in the UK, you are investing in a country whose tax system supports business.” Mr Alexander explained that R&D tax credits are available for US firms in the UK, including "tax reliefs for film and TV… and computer games and animation."
Steve Govey, Client Partner at Beavis Morgan, comments:
“Danny Alexander is right to use tax incentives to entice foreign companies to invest in the UK (by way of a UK subsidiary).
Research and Development (R&D) tax credits are extremely valuable, and are far broader than often appreciated. At Beavis Morgan, we have successfully claimed on behalf of many creative and technology businesses developing new procedures and products without the hint of a laboratory anywhere nearby.
Patent Box can also be a natural extension where a Company's inventions or innovations are granted Patents in the UK or Europe, allowing a tax rate of only 10%.
Nor should incentives to invest in people be forgotten. The Enterprise Management Incentive (EMI) share option plan provides a tax efficient way of attracting and retaining talented staff and can often be used as a substitute for paying excessive salaries.”
For further information on tax incentives for foreign companies in the UK, contact Steve Govey on +44 (0)20 7549 2371 or email steve.govey@beavismorgan.com