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UK Publishes Draft Tax Framework For Business

Tuesday, February 23, 2010

The UK government published on February 22 a draft Tax Framework for business, intended to provide greater certainty for large businesses about the government's approach to the development of tax policy.

Developed in discussion with the Business-Government Forum on Tax and Globalisation, set up in April 2008, the document is seeking feedback on the draft, which sets out the key principles underpinning the development of tax policy – including securing fairness, competitiveness and stability for the UK, and ensuring new burdens and complexities are not created for UK business.

The draft also sets out the policy process the government follows when developing tax policy, including consultation wherever possible.

In short, the principal purpose of the tax framework for business is, according to the Treasury, "to set out a short and clear statement on the government’s principles for UK tax policy."

“The UK is a good place to do business and we want to keep it that way," Chancellor of the Exchequer Alistair Darling said. “Businesses want certainty on tax. That’s is why today I have set out, in collaboration with UK business, the government’s key principles for tax policy and how we will engage with business when developing tax policy.”