UK TAX SYSTEM

UK Tax System

Abstract

The report discusses the use of corporate taxation as a tool by government to engineering industry of UK. The report is based on the main theme of UK tax system. The next section of the report analyzes the operation and scope of the UK tax system and compute the income tax liabilities of individuals . the next part of the report evaluates the corporation tax liabilities of companies and groups of companies. The research acritically reviewed Mr. Jim McColl, chairman of engineering firm Clyde Blowers, called on ministers to offer corporation tax “holidays” to industrial businesses that invest in the UK”. Finally, the report ends with the recommendations and conclusion of use of corporate taxation in engineering industry of UK.

Table of Contents

Abstractii

The Use Of Corporate Taxation As A Tool By Government To Support Industry1

Operation and Scope of the UK Tax System2

Compute the Income Tax Liabilities of Individuals:3

Corporation Tax Liabilities of Companies:3

Quotation Analysis with reference to UK Tax System:4

Recommendations5

Conclusion6

References7

Appendices8

The Use Of Corporate Taxation As A Tool By Government To Support Industry8

Operation and Scope of the UK Tax System9

Compute the Income Tax Liabilities of Individuals:9

Corporation Tax Liabilities of Companies:10

Quotation Analysis with reference to UK Tax System:10

Recommendations10

UK Tax System

The Use Of Corporate Taxation As A Tool By Government To Support Industry

Investment has become in recent years, the coveted public policy. All states, including most developed work to adjust and reinvent the incentive tools to be even more attractive in economic activity generates employment and wealth for the community. Of course, the fiscal instrument is put to light by the tax cost of higher and higher in determining the final cost of products and services and led to the emergence of a true tax planning, which is even related to financial engineering. Like businesses, states are then in competition with each other to offer the most attractive tax environment possible. Each state seeks to be more competitive, including offering a more competitive tax that would make the company more competitive. However, tax incentives that have become a sort of battle cry between the tax laws are not the most important determinant of investment decision. Studies and surveys the relevant authorities place the tax factor to sixth place among the factors that influence the decision of the investor.

We so urgently need clarity in our country's long-term vision for our energy provision, our digital infrastructure and transport. We need a targeted industrial strategy to resurrect manufacturing from 11% of GDP to 20% by 2020. To deliver this, we need the most competitive tax environment in the world. Only if we know where we are heading and with what velocity, will the massive inward and private sector investment needed be applied by confident investors. And only with all this in place, can the long lead-time skills supply-chain of engineers and technicians from our universities and colleges be geared up to a large enough scale to underpin it. You can't stop-start skills and great industries.

There are good things coming into place such as ...