With the growth forecast recently updated for the UK the UK Economy – is this a time for overseas companies at setting up in the UK to rethink their expansion strategy?

Granted, whether you voted LEAVE or REMAIN, this is good news for the UK economy. However, what does that mean for companies looking to expand to the UK, and those companies already here?

The Bank of England lifted its forecast for UK GDP after signs the UK economy did not slow as much as feared post Brexit vote.

“The comments came as the Bank announced that, for now, interest rates were to be left on hold at 0.25%.”

This can only benefit those companies who are already in existence in the UK. Those such entities can take advantage of lower interest rates by, obviously, not paying such a high rate of interest. These small-medium sized companies are without a doubt the backbone of the ‘Great’ British economy.

For those overseas companies who are looking at setting up in the UK there has been many rumours over the expected tax rate figures which will also impact the current established UK businesses. Corporation Tax (Income Tax) rate is expected to drop to 12.5%. Although there is no clear indication when, or certainty that this will happen.

As to the other rates, there is no clear indication what will happen to those. The UK is expected to remain attractive to those inbound companies looking at establishing themselves in the UK.

Indeed, the announcement of a potential reduction of interest rates again to near-zero in November later this year will be welcomed by both overseas companies, and those already operating in the UK.

For further support on your UK – or soon to be UK business, please get in touch for assistance.