The increase in the Annual Investment Allowance, the amount a business is allowed to invest tax free in capital expenditure, from £250,000 to £500,000; the doubling of the UK Export Finance Initiative to £3 billion; and the cutting of the interest rate on export finance loans to the minimum allowed by law are just some of the measures that will promote investment into UK industries from overseas. In addition, these measures are all on top of the already known reduction in corporation tax to 21 per cent from 1 April.
As a gateway for international investment into the UK, Jersey is at the forefront of this activity and sees first-hand the appetite for investment into Britain. According to a report by Capital Economics last year, £1/2 trillion of foreign investment into the UK came through Jersey and the Island intermediates almost one pound in every twenty of investment by foreigners into the UK. So the Chancellor’s boost for those seeking to invest is welcome news for Britain and Jersey alike.
Commenting, Geoff Cook, Chief Executive Officer of Jersey Finance, said: “While not among the headlines following this week’s Budget, the Chancellor has undoubtedly painted an overtly positive picture for the UK as a place to invest. This has been at the heart of the Government’s plan since it took office and by outlining a range of policies that will inevitably attract international investment into the UK there can be no doubt that this motif is very much alive and kicking.
“Companies and individuals based abroad are primarily looking for three things: stability, confidence and a positive regulatory backdrop under which to invest. As business confidence in the UK continues to grow and the Government introduces new policy measures to promote investment, the prospects for continued growth in the levels of foreign investment remain extremely strong.
“Jersey Finance strongly welcomes the Chancellor’s Budget in this regard. The appetite from global investors continues to grow. While many now see the Eurozone as stabilising, the UK remains a safe harbour for investors across the world.”