There is a small sense of medium sized to large corporations finally starting to baulk at various new business tax burdens being continually levied in the UK.
In separate stories this morning we can see that the Port and Airline operators are seriously considering moving capacity out of Britain to the continent where the arbitrariness of retroactive or ‘boutique’ taxes are less onerous.
While this is in the early stages of name and bluff calling, traders would be advised to remain cautious over the negative possibilities this may engender.
With each week/month of no real signs of an economic upturn emerging the desperation of the Revenue to grab as much as at can to cover the excesses of the current administration may ruffle more and more feathers.
The oft quoted 70% of FTSE 350 income coming from non-domestic sources can turn into a position of weakness rather than strength if more and more of the taxable revenue is transferred to more favourable locales.
While the city slowly starts to regain some confidence, much to the irritation of many journalists (I have to say), the rest of the country seems to be settling ever lower into the mire.
The squeals from many over the lack of hubris from Goldman’s or Barclays (to name just a couple) obscures the fact that many financial institutions did not do as badly as the headline disaster stories of RBS and HBOS.
Many were only forced into raising capital to comply with the increased demands of the regulators and now that much of the competition has been swept away (especially in the investment bank sector) it now seems that some players only have to blink and the money flows in.
Domestic banks are likely to continue to suffer as their loan books decay but the fact is that most units within the square mile are not, now, directly exposed to this problem.
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'UK Taxes and Stronger Banks' edited by DB, updated 24-Jun-09
UK Taxes and Stronger Banks, updated 24-Jun-09
There is a small sense of medium sized to large corporations finally starting to baulk at various new business tax burdens being continually levied in the UK. In separate stories...read article: UK Taxes and Stronger Banks.
Is it Time to be More Positive?, updated 14-Apr-09
For most of the Major indices we are now in the constricted trading area which defined the mid Jan to mid Feb volume trading range. Reading the analysts comments we can see a sharp divide in opinion arising. Half appear to think that...read article: Is it Time to be More Positive?.
Scaling In and Out of Positions, updated 15-Mar-09
I don't like change and that's getting worse. However, I know that to survive one has to adapt. It's time to start accumulating positions in good companies. Lately I've been scaling in and out of spread betting positions, and that is the plan for...read article: Scaling In and Out of Positions.
Lloyds, HBOS and Deflation, updated 16-Feb-09
It is not clear whether the losses in HBOS are actually 'toxic' debt or whether they are real loans to real businesses in the UK that have gone belly up. HBOS was a big lender to...read article: Lloyds, HBOS and Deflation.
Risk Warning: Spread betting and CFD trading carry a high level of risk to your capital and you may lose more than your initial investment. Spread betting and CFD trading may not be suitable for all investors. Only speculate with money that you can afford to lose. Please ensure you fully understand the risks involved and seek independent financial advice where necessary.
The contents on CleanFinancial.com are for information purposes only and are not intended as a recommendation to trade. Nothing on this website should be construed as investment advice.
Neither CleanFinancial.com nor any contributing company/author accept any responsibility for any use that may be made of the above or for the correctness or accuracy of the information provided.
* Tax law is subject to change or may differ if you pay tax in a jurisdiction other than the UK.