MOVES to make UK corporation tax more competitive should not have a negative impact on Guernsey’s economy, a Budget briefing seminar audience has heard.

KPMG executive director Tony Mancini (pictured) told the firm’s annual Budget seminar that he believed the coalition Government’s stated aim to create the most competitive tax system in the G20 and to drop the corporate tax rate from its current 28% to 23% by April 2014, should also have benefits for Guernsey.

He said that the coalition could expect to see benefits of companies investing in the UK, particularly those in the finance sector, and that Guernsey’s well-established position as a significant source of funds for the City of London would likely see the island faring well too.

‘It is felt that the current regime has driven businesses out of the UK because of its complexity and relatively high tax rates, so the Government will hope that this can bring them back with a new regime of lower rates and more clarity,’ said Mr Mancini.

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