KPMG polled senior tax professionals in 57 of the UK's largest businesses
Tax incentives for capital investment in infrastructure are the ‘key measure’ identified as a potential driver of growth among Britain’s biggest businesses, according to a KPMG poll of tax professionals.
‘The findings suggest that such reliefs could unlock tens of thousands of jobs and provide a stimulus for double digit increases in capital expenditure,’ the firm said.
KPMG said organisations which suggested tax reliefs for infrastructure or capital investment reported that they would increase their headcounts by an average of 6% as a result (7% among FTSE 100 companies), increase their capital expenditure by 12% and their R&D by 17%.
‘When asked what single measure in the UK tax or regulatory regime the government should introduce over the next 12 months, tax relief on infrastructure or capital investments was the stand out leader in terms of what was suggested,' said Chris Morgan, head of tax policy at KPMG in the UK.
Margaret Stephens, global head of infrastructure tax at KPMG, said: ‘Investment in infrastructure is a national imperative for the UK, and government must do all it can to support it. However, the current tax system actually deters capital investment, for example, in new power stations, waste plants, roads and rail and other capital projects. UK is the only G20 country which does not give tax relief for this expenditure.’
KPMG polled senior tax professionals in 57 of the UK's largest businesses
Tax incentives for capital investment in infrastructure are the ‘key measure’ identified as a potential driver of growth among Britain’s biggest businesses, according to a KPMG poll of tax professionals.
‘The findings suggest that such reliefs could unlock tens of thousands of jobs and provide a stimulus for double digit increases in capital expenditure,’ the firm said.
KPMG said organisations which suggested tax reliefs for infrastructure or capital investment reported that they would increase their headcounts by an average of 6% as a result (7% among FTSE 100 companies), increase their capital expenditure by 12% and their R&D by 17%.
‘When asked what single measure in the UK tax or regulatory regime the government should introduce over the next 12 months, tax relief on infrastructure or capital investments was the stand out leader in terms of what was suggested,' said Chris Morgan, head of tax policy at KPMG in the UK.
Margaret Stephens, global head of infrastructure tax at KPMG, said: ‘Investment in infrastructure is a national imperative for the UK, and government must do all it can to support it. However, the current tax system actually deters capital investment, for example, in new power stations, waste plants, roads and rail and other capital projects. UK is the only G20 country which does not give tax relief for this expenditure.’
