Andy Pyle, KPMG UK head of real estate, said:
“The Government’s decision to not proceed with the Sovereign immunity tax change will be widely welcomed by institutional investors who invest in real estate and infrastructure in the UK, which are critical enablers for economic growth and success.
“Institutional investors can choose where they invest globally and, although they were not the intended targets of the revised approach to sovereign immunity, the proposed changes presented a risk to the attractiveness of the UK as a safe place for private investment.
“Maintaining tax competitiveness for the UK will make it much easier for the national and local governments to secure the private investment that will be critical to enable key projects to be built out across the UK - whether as part of the Levelling-Up agenda or to deliver the National Infrastructure Plan.”