UK’s Tax Assurance Plan Seen Boosting Industry Mega Projects

A UK plan to let investors know their tax obligations before they launch major infrastructure projects promises to cut down on disputes and costly court battles.

Practitioners said the newly announced assurance service would provide much-needed clarity for projects at a time when the Labour government seeks to stimulate economic growth.

The government is seeking to avoid the “deadweight of uncertainty” that unclear tax positions have had on business investment, said Chris Sanger, EY UK’s tax policy leader.

He added that tax-induced “uncertainty premiums”—costs associated with a potentially unfavorable tax position following an audit—identified in the planning stage can ...