What the UK can and can’t safely tax is shown by the fragility of the banking levy tax. HSBC, the Hong Kong & Shanghai Banking Corporation, said in its recent shareholders’ meeting, in Hong Kong, that is will look again at the best place to base itself once UK regulation has settled down. A big part of this is the UK banking levy, which some HSBC shareholders see as a tax just for being in the UK. The UK tax system still in many ways has a 19th century system of taxing companies according to where the office address is located. But in the 21st century multi-nationals easily move, or reallocate, addresses all around the world. This is a big problem for a tax system not based on the real profits generated in a country, before any reallocations.
Tax Barrister, Accountant