Emerging thinking on overall shape of new regime
•Entity v Income
•Balance between objective and purposive approachesObjective approachwould work by designing simple tests as proxies for artificial diversion from the UK Purposive approachwould work by having an over-riding principle that would apply to profits held in low tax jurisdictions
•Based on feedback from working groups, questionnaires and wider business consultation, preferred shape of new regime:
•Entity rather than income basis, but moving away from an ‘all or nothing’ approach
•Prefer to start with simple/certain objective tests, reducing pressure on subjective purpose based test
•Avoid tracing rules

Advantages of starting young
* Prepare children to:
* Make good decisions about money
* Use financial products wisely
* Get ready for the world of work
* Understand the economy
* Know where to go to for help about money

# Activities that contribute to UK productivity and employment
# Innovative activities that contribute to a “knowledge economy”
# High value-added activities that support productivity growth
# Multinational groups locating these activities in the UK
# Activities in which the UK has a comparative advantage