Mazars, the integrated and independent international organisation specialising in audit, accountancy, tax and consulting services, predicts new tax and tariff developments that companies need to keep abreast of on both sides of the Atlantic.
Vesko Petkov, corporate & international tax partner based in Mazars’ Birmingham office, said considerable uncertainties existed as to future direction both in the UK and US.
His comments follow a visit to the United States to attend an international conference and discuss the latest indicators on how a new US presidency will affect business.
Mr Petkov said: “New proposals expected on tax changes are extensive but the main thrust is income tax and corporate tax.
“According to proposals throughout this latest election campaign, income tax bands could be collapsed from seven into three, with widespread cuts. The corporate income tax rate could be significantly reduced, from 35 per cent to 15 per cent, regardless of the size of the company.
“The US is a major trading partner of the UK with many UK parented groups setting up US subsidiaries. The potential impact of the proposals will vary from group to group, but at this stage they are only proposals, so a keen eye needs to be kept on future announcements and advice tailored to individual facts and circumstances.
“A key area of concern for trading partners of the US will be implications for tariffs, If the US takes a protectionist stance this could have a negative impact on global trade.”
Mr Petkov highlighted, in his view, how the new approach in the US related to the potential fall-out from Brexit.
He continued: “There is clearly a period of great uncertainty too at the UK’s future tax and trading position in the course of a withdrawal from the EU.
“The UK is a member of the G20 and OECD independently from its membership of the EU. It will thus continue to be a party to double tax treaties and other agreements that have their basis in these international organisations.
“It is too early to know what the ultimate effect will be from both of these changes affecting businesses, but the message has to be for companies, particularly multinationals, to keep a close eye on developments and stay in close touch with their advisers.”