We support the Chancellor’s aims to make the UK the most competitive tax system in the G20 and the best location for corporate headquarters in Europe. Whilst the Government’s proposals for reform of the Controlled Foreign Companies (CFC) regime should play a significant part towards achieving this policy objective, the current draft rules require further work to ensure the new regime achieves the desired outcome.

We also welcome the reductions in headline corporation tax rates which will bring down the rate of corporation tax to 23% by 2014. We believe that in the medium term this step will also help to boost investment and growth in the UK. We have taken the step of recognising the tax rate reductions in our 2011 [EEV] figures. The effect of this on shareholders’ equity is disclosed at Note 13 of the financial statements.

We observe that there have recently been a number of highly publicised cases regarding whether or not companies have been paying a fair level of tax in the UK. We aim to be transparent about the tax we pay and have set our specific information in the Tax section of this report.


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