Travel companies with overseas branches could benefit from new tax laws being considered by the Government.
The Government is currently carrying out a consultation on changes to the tax system that could help UK businesses with operations in other countries.
Travel accountants Elman Wall is responding to the consultation document on behalf of its clients and is urging other travel firms with overseas offices to get in touch.
Russell Eisen, tax director at Elman Wall, said there could be tax-saving opportunities for the travel industry if the new system comes into place next year.
“The Government is consulting on the form of an exemption regime for foreign branch profits, to enhance the UK’s competitiveness and to achieve greater consistency of tax treatment between foreign branches and subsidiaries of UK companies,†he explained.
“This could benefit a significant number of travel companies, for example, ski companies with overseas operations. I am already responding to this Consultation Document on behalf of our existing clients I would and urge travel businesses with overseas branches to contact me for an informal chat.â€
Under the current system, in cases where the foreign tax paid is less than the UK tax, the company must pay a ‘top up’ of UK tax.
Under the proposed exemption regime, there would be no such tax.
“This is where travel companies could potentially benefit, alongside large multinationals, and why we are ensuring that they are represented in the consultation process,†added Eisen.
The Government is seeking responses to the document by the 15 October.
It is primarily aimed at the oil and gas, insurance and banking sectors, but Eisen said travel businesses should not be forgotten in the process.
By Bev Fearis
