Corporate tax system ''driving businesses away'' - commercial mortgages

05 March 2007

Concerns are being raised that an overly complicated corporate tax system is acting as a deterrent to businesses in the UK, ultimately impacting upon growth in the domestic commercial mortgages market.

It is feared that the current tax system could lead to an exodus of international businesses from Britain despite other favourable factors in UK markets.

An upcoming report from Curzon & Company suggests that many businesses are unwilling to deal with the UK''s tax regime, which is seen as "burdensome and unpredictable".

In particular, many are concerned that an unpopular tax system could result in fewer business headquarters in the UK. Frank Esson of Curzon & Company argues that changes must be effected in the present tax regime if businesses are to be encouraged to stay in the UK, including those with commercial mortgages.

"Corporation tax rates are at a limit and have to start coming down," he told the Times. "And we must see some real improvements in the infrastructure."

Ernst & Young has called on the government to simplify the tax system so as to promote competitiveness in the long-run.