British taxes 'benign' to foreign investors

Foreign investors have little to fear from the British taxation system, it has been claimed - despite many believing otherwise.

A committee working towards encouraging more investment in the UK from overseas has said that communication is the obstacle and not tax.

The group, which is made up of a number of private sector individuals, said that there are "mixed messages" about Britain's tax system and that this was giving potential investors a negative perception.

"Taxation is not the barrier, it's the understanding which is the barrier," Richard Thomas, committee member and Gatehouse Bank chairman, told Reuters.

Nick Edmondes, a partner at law firm Trowers and Hamlins and the committee's advisor for Oman, told the news organisation: "The bottom line is that the UK is very benign for tax on investments."

A recent survey by Think London shows that IT is the top sector in the capital for foreign investment.