More than a quarter of small-to-medium business enterprises (SMEs) are contemplating going abroad in order to avoid paying excessive taxes, according to new research.
Findings from a study by Tenon revealed that 26 per cent of the respondents are considering a move overseas within the next three years, while one in 20 have made firm plans to relocate.
The research showed that the impact of corporation and capital gains tax and the abolition of taper relief combined with the economic slowdown are responsible for the thoughts of SME owners turning abroad.
Speaking to is4profit.co.uk, Andrew Jupp, Tenon head of tax, said: "Entrepreneurs are genuinely struggling in the current legislative and economic environment and the government must heed this call for help in order to avoid losing some of the country's most talented business people."
Meanwhile, a study by Barclays undertaken in September predicted that there will be 150,000 fewer SMEs in the UK by 2010.
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