Tax is just one factor to consider when making decisions about business investment, writes Margaret Connolly, partner and head of taxation at Reeves.

The UK has a number of significant non-tax advantages from the perspective of international business.

An open and politically stable society, the benefits of common law jurisdiction, and a well-educated workforce that supports an enviable reputation in scientific discovery and technological innovation. There is also the English language.

Kent offers all these advantages and special ones of its own - easy reach of London, lower costs, on the doorstep of Continental Europe and support structures needed for business success.

The recent Budget was billed as "unashamedly" in favour of business and contained measures of interest to potential inward investors.

The main rate of Corporation Tax (CT) has fallen to 24%, giving the UK the lowest CT rate in the G20.

As for tax reliefs, the already generous system of R&D tax credits will be further enhanced by allowing larger companies to obtain a repayable "above the line" credit from April 1, 2013.

Innovation is further encouraged by the introduction of the Patent Box regime, which will allow corporate income and gains generated from patents to be subject to a special CT rate of 10%.

In addition, a number of tax reliefs are to be introduced next year to attract video game design, animation and high-end television production to the UK.

Finally, the 50% rate of personal income tax for those earning in excess of £150,000 is reduced to 45% from April 6, 2013.

UK companies can receive inbound dividends on a tax free basis, while the UK does not impose withholding tax on outbound dividends.

n Contact Margaret Connolly on 01227 768231 or email margaret.connolly@reeves.co.uk