The UK’s corporation tax rate has seen a dramatic fall in recent years. In 2010 it was 28% but the coalition government have brought that down to 21% now and 20% for next year. There have also been tax incentives to boost business investment and this has led to a growing number of US firms setting up operations in the UK. By moving some executives and business to the UK, firms are able to legally take advantage of the tax system; the recent Pfizer deal was seen by many experts as being motivated by tax savings. The UK government deny that the UK is a tax haven for foreign investment, saying that it has a competitive tax system to encourage business investment. Read the full story.