Follow Us

We use cookies to provide you with a better experience. If you continue to use this site, we'll assume you're happy with this. Alternatively, click here to find out how to manage these cookies

hide cookie message

US tech companies invest in UK, but Obama aide demands better tax breaks

Some 3,500 US companies now have a British base, according to a US trade envoy

Article comments

American IT companies are increasingly investing in the UK, helping to boost the country’s struggling economy, but better tax incentives could help accelerate this trend, according to a leading US trade envoy.

Suresh Kumar, the Assistant Secretary of Commerce in Barack Obama’s administration, said in an interview with Lewis PR that US businesses are choosing to set up shop in Britain because of its educated workforce, democratic values, common language, robust trading ties and its geographical position as a gateway to Europe, the Middle East and North Africa.

“We are increasingly seeing a trend of IT-related companies, technology-based companies, both big and small, coming to this country, particularly from Utah and Arizona,” said Kumar.

His suggestion is backed up by recent research from the British-American Business Council, which found that the US remains by far the biggest source of investment projects in the UK, accounting for 27 percent of all investment and almost 40 percent of created or safeguarded jobs.

There are now around 3,500 US companies which have a British base. However, Kumar called for the UK to offer more tax breaks to encourage even more American firms to launch in this country.

“There are always avenues to improve. One of the things would be a taxation environment which would be more inviting for particularly small and medium enterprises to set up shop here,” he said.

“While you are seeing companies come, the attraction could be even better if the tax laws really encouraged more companies to set up shop here. Basically, you could make it attractive for those who set up a shop to get a tax break. A better tax regime would be an incentive.”

The UK government has been keen to highlight the role of Britain's IT sector in driving the country's economic recovery. Speaking at an event last week, the Mayor of London's digital advisor Kulveer Ranger said that the 'Tech City' initiative was helping to encourage more business to set up a base in the capital.

Ranger also said the IT community needs to use the opportunity of the London 2012 Olympics, when the spotlight will be turned on the UK, to “set up a shop window and demonstrate our wares”.

Meanwhile, the UK government is attempting to attract entrepreneurs with the recent introduction of lifetime capital gains tax relief for entrepreneurs, meaning that the first £10 million of capital gain is taxed at just 10 percent. The R&D tax credit also means that companies get 225 percent in tax credit for the investments they make in R&D.

Kentucky-based document management company Lexmark recently set up an office in Marlow in Buckinghamshire, and the company expects to grow its business in Britain by 300 percent within the next 5 years.

“American CEOs can establish themselves and gain credibility in the UK much more quickly than they can in some other European markets,” said the company’s General Manager for UK and Ireland is Gary Bourland.

Washington-based F5 Networks also today announced the opening of an International Technology Centre in the City of London, near to 'Silicon Roundabout', to provide training in application and data delivery.



Share:

More from Techworld

More relevant IT news

Comments



Send to a friend

Email this article to a friend or colleague:

PLEASE NOTE: Your name is used only to let the recipient know who sent the story, and in case of transmission error. Both your name and the recipient's name and address will not be used for any other purpose.

Techworld White Papers

Choose – and Choose Wisely – the Right MSP for Your SMB

End users need a technology partner that provides transparency, enables productivity, delivers...

Download Whitepaper

10 Effective Habits of Indispensable IT Departments

It’s no secret that responsibilities are growing while budgets continue to shrink. Download this...

Download Whitepaper

Gartner Magic Quadrant for Enterprise Information Archiving

Enterprise information archiving is contributing to organisational needs for e-discovery and...

Download Whitepaper

Advancing the state of virtualised backups

Dell Software’s vRanger is a veteran of the virtualisation specific backup market. It was the...

Download Whitepaper

Techworld UK - Technology - Business

Innovation, productivity, agility and profit

Watch this on demand webinar which explores IT innovation, managed print services and business agility.

Techworld Mobile Site

Access Techworld's content on the move

Get the latest news, product reviews and downloads on your mobile device with Techworld's mobile site.

Find out more...

From Wow to How : Making mobile and cloud work for you

On demand Biztech Briefing - Learn how to effectively deliver mobile work styles and cloud services together.

Watch now...

Site Map

* *