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In recent years there have been numerous takeovers of British companies, this has led to calls for legislation to protect our domestic market from overseas rivals.
BAA and O2 were taken over by Spanish companies; the reason for the takeover was a change to Spanish law that delivered tax benefits to Spanish firms buying up overseas companies.
British companies are likely to get a boost from new rules being considered as part of the Finance Bill 2012, these changes provide for a Corporation Tax rate of 5.75% on the acquired assets rather than 23%.
Although the proposed Controlled Foreign Companies rules do not come into force until 2014. Many ambitious growth oriented companies are seeking to raise funds to take advantage of the changes.
Of course there may be ways in which your business can reduce its overall rate of corporation tax (even if you are planing to expand overseas). Contact one of our Financial Planning Consultants, at Pareto Lawrence we offer both Financial and tax planning advice to corporate and private clients.