Manufacturers should receive greater tax breaks says McColl

Accountants may be interested to learn that a leading businessman has said that the government should introduce greater tax breaks for companies operating in the manufacturing sector.

The chairman of Clyde Blowers, Jim McColl, said that in order to rebalance the economy, the UK needs to focus on manufacturing. He has called on government ministers to give corporation tax holidays to industrial businesses willing to invest in this country.

McColl explained that the UK needs mort investment in manufacturing to boost the economy and create jobs and this would be a way of achieving it, adding that a similar scheme is already operational in China.

Under his proposals, corporation tax would be suspended for a set period if the firm could prove that its investments were viable. Although it is unlikely that the Treasury will take this on board, McColl has previously been able to influence government policy on trade insurance.

Meanwhile, HMRC could soon see more money flowing into its coffers as the Anglo-Swiss tax deal nears completion.

Negotiations have been underway for some months now as the government steps up its bid to tackle tax evasion. A Swiss official recently said the talks were in their final phase.

Swiss banking officials will not disclose the assets held by British nationals in their institutions but will deduct and remit a fixed rate payment to the UK taxman. A similar deal was recently struck between the Swiss and German governments.

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