With some big decisions and tough choices to be made in this weeks pre-Budget report, tax experts at PricewaterhouseCoopers LLP urge the chancellor to make the final announcement of the decade one for growth. Experts for business, enterprise and personal tax provide their wish list for Alistair Darling.
Barry Murphy, head of corporate business, Pwc, said: With the current consultation moving ahead, we would welcome the chancellor further clarifying the alignment of taxation of international profits with the commercial reality that businesses today are operating in a truly global marketplace.
We would like to hear an update on proposals to review tax rules relating to intellectual property. The vision of the future is one of a Digital Britain and it is imperative that the tax regime supports this vision. Encouraging development within key science and technology areas underpins future business investment.
Balance and stability in the taxation of executives is a core wish for business too. Policies to encourage the arrival and retention of talent into the UK economy will be most welcome.
Mary Monfries, head of UK private business, PwC, said: Now is the time for the chancellor to build upon getting private capital into entrepreneurial businesses.
The launch of the UK Innovation Investment fund is a step in that direction and the success of this (measured by new institutional venture funding actually reaching the businesses that can drive significant economic growth) will be critical.
We would like to see the chancellor announce a continued support for such schemes as the enterprise investment scheme and venture capital trusts.
We would like to see the chancellor alleviate doubts over the long-term fiscal framework for enterprise in the UK. Ideally enterprise would like to hear something from the chancellor that signals a tax efficient share incentivisation programme, which will work with them to grow their business, and encourage long-term commitment for employees and investors.
Leonie Kerswill, personal tax partner, PwC, said: Uncertainty of changes to income tax rate bands, inheritance tax and capital gains tax changes are unsettling for individuals, and we would like to see the chancellor give some certainty around the scope of tax rises as many individuals will want to know where they stand.
We would encourage the chancellor to think outside-the-box, taking a radical stance on tax-efficient bonds to help individuals fund worthwhile things, such as home ownership. This would encourage saving and help government raise funds. Copyright The Financial Times Limited 2009. You may share using our article tools. Please don't cut articles from FT.com and redistribute by email or post to the web.