Corporate fiduciary to be affected by tax changes?

Corporate banking could be affected by new business tax regulation reforms introduced by the government.

The Controlled Foreign Company rules will be revamped to become more competitive, while firms with overseas branches will no longer be subject to corporation tax on profits earned abroad.

Richard Baron, head of taxation at the Institute of Directors, said the move will increase Britain's appeal to potential investors but it is not enough to put the country top of the list.

He added that the main issue for the country is to get corporation tax down to encourage inward investment and boost the economic recovery.

"There is going to be international capital around thinking where should we open our next branch," he said. "The more that the UK looks attractive, the better."

The Office of Budget Responsibility recently revised its growth prediction for next year from 1.2 per cent to 1.8 per cent.  ADNFCR-2318-ID-800271244-ADNFCR