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UK slides down tax-friendly rankings
By Sharlene Goff in London

Published: May 1 2009 20:29 | Last updated: May 1 2009 20:29

The UK is rapidly sliding down the ranks of the world’s tax-friendly destinations as new higher rates mean entrepreneurs and business owners could be better off in traditional offshore havens and many other countries around the world.

Figures compiled for the Financial Times by Deloitte show that for a business owner earning £250,000 the UK will soon be more expensive than Ireland, the US, Singapore, Hong Kong and Germany, as well as Jersey and Switzerland.

EDITOR’S CHOICE
Weighing up benefits of domicile change - May-01Informa joins growing list of tax exiles - May-01Brit Insurance to move HQ to the Netherlands - Mar-09Beazley becomes latest company to relocate to Dublin - Feb-13The fading appeal of the UK reflects the new 50 per cent rate of income tax that will catch people earning £150,000 or more from next April and its high rate of national insurance for employers.

“When these charges are added together, individuals may think the UK is not an attractive place to do business,” said Bill Dodwell, partner at Deloitte.

He did, however, point out that the UK does have low corporate tax and a competitive business environment.

“Tax in the UK has got to such a level that they can go beyond the usual offshore locations,” said Mike Bussey, chief executive of Arbuthnot Latham, the private bank.

Switzerland remains the most popular choice for wealthy clients looking to avoid the UK’s higher taxes.

But advisers said Singapore and Dubai, with low income tax and attractive breaks for businesses, were becoming more viable options.

Mr Bussey said some clients felt a line had been crossed with the most recent tax increases.

“There has been a fundamental change in the perception people have of the UK as a friendly place for entrepreneurs,” he said.


Financial Times ............. com

Increased taxation in the UK not equal Dubai doing fine...

The economic structure in the UK is far (VERY FAR) better than the Gulf Regions. There are structured regulations, and governmental bodies to oversee business compliance. More imporantly there is a proper legal system for business to resort to if needed.

Business owners and Entrepreneurs will consider the above when looking at Dubai. Things here are hardly structured and in the end may end up costing a lot more.

For people looking for jobs, they will flock to Dubai as its cheaper for them.

Hey uaekid. First of all let me tell you that I understand your proud of your country and defend of it. Everybody loves their country and don’t like to hear a lot of criticism about it. But as Dresden mentioned, something bad happening in UK dose not equal something good in Dubai.

At some point we all have to stop give a damn about what others are saying and be honest to our self and see the shortcoming of our country and try to fix them.

I know a lot of UK people don’t like something’s in their country and criticize it but try to fix it. If one PM cannot fix the problems, they vote for another one to do it. And if you criticize their country, mostly they try to defend it.

It’s all ok but we also should pay more attention to fix problems in our countries in the ME.

bezor wrote:Hey uaekid. First of all let me tell you that I understand your proud of your country and defend of it. Everybody loves their country and don’t like to hear a lot of criticism about it. But as Dresden mentioned, something bad happening in UK dose not equal something good in Dubai.

At some point we all have to stop give a damn about what others are saying and be honest to our self and see the shortcoming of our country and try to fix them.

I know a lot of UK people don’t like something’s in their country and criticize it but try to fix it. If one PM cannot fix the problems, they vote for another one to do it. And if you criticize their country, mostly they try to defend it.

It’s all ok but we also should pay more attention to fix problems in our countries in the ME.

Well said. I am going to assume that you are Emirati. And if that is the case, it is nice to hear from someone who can be objective.

Bora Bora wrote:Well said. I am going to assume that you are Emirati. And if that is the case, it is nice to hear from someone who can be objective.

No, Iranian, and I see ALL of our problems, hard not to. But I'm sure there are Emiratis who also try to fix their problems.

never said we are perfect ,hell if it's up to me , I would rather live in Japan LOL, we got hundred of things that are wrong ,out dated and still have a looooooooong time to perfection.

bezor wrote:Hey uaekid. First of all let me tell you that I understand your proud of your country and defend of it. Everybody loves their country and don’t like to hear a lot of criticism about it. But as Dresden mentioned, something bad happening in UK dose not equal something good in Dubai.

At some point we all have to stop give a damn about what others are saying and be honest to our self and see the shortcoming of our country and try to fix them.

I know a lot of UK people don’t like something’s in their country and criticize it but try to fix it. If one PM cannot fix the problems, they vote for another one to do it. And if you criticize their country, mostly they try to defend it.

It’s all ok but we also should pay more attention to fix problems in our countries in the ME.

Well said

uaekid wrote:never said we are perfect ,hell if it's up to me , I would rather live in Japan LOL, we got hundred of things that are wrong ,out dated and still have a looooooooong time to perfection.

Japan is quite nice. I love that country and head there once a year just to visit. They are pretty much miles ahead of the world with technology and great food.

I DONT THINK DUBAI WILL GO DOWN;NO WAY;UNTIL H.H MOHAMMAD IS ALIVE

If UKs tax slides town and become low, business here will go back to UK