Tories face lobbying over tax relief policy
Business says UK competitiveness threatened by Tory plan to remove tax relief on interest
The Tory party is reportedly coming under pressure over its policy to reduce
the tax deductibility of interest charged on corporate debt.
The party has signalled it wants to cut the tax relief as a way of funding a
reduction in the headline rate of corporation tax.
However, The Financial Times reports mounting opposition. Jeegar
Kakkad, of the EEF Manufacturing group, is reported as saying: ‘Interest
deductibility is potentially too big a price to finance a reduction in headline
rate.’
Chris Sanger, partner at Ernst & Young, is insisting the relief helped
build businesses in the UK. ‘Any significant change risks making the UK far less
attractive,’ he told the paper.
