By Doug Vickers, CA

1. Britain is a high-tax economy.

The rates of business and personal taxation in the United Kingdom are significantly lower than in most European countries, and lower than many other advanced, industrialized nations.

Income tax begins at 10 percent and rises progressively to a maximum of 40 percent. In most cases, allowances and reliefs can reduce tax liability considerably.

Corporate taxation is similarly banded depending upon profits, with a maximum of 30 percent.

2. Setting up a business in Britain is a bureaucratic and time-consuming task.

This may be true of some European countries, but is certainly not true in the United Kingdom. In fact, the requirements are remarkably speedy and straightforward. The cost of registering a new company is extremely low.

3. The United Kingdom is not a 'business friendly' environment.

It is odd how perceptions often lag behind reality. Forty years ago there may have been something in this notion when socialistic ideas still held some sway. Today, things could hardly be more different.

The United Kingdom is one of the world's most economically liberal countries, with an absolute commitment to the market economy. Indeed, it is the declared policy of the British government to make the country a haven for entrepreneurs.

4. Foreign companies face restrictions on repatriating profits.

Untrue. There are no restrictions on the movement of capital in and out of the country.

5. The United Kingdom is a very expensive place to operate.

The United Kingdom will never compete with the low-wage economies of the Far East or other emerging countries. On the other hand, it offers a highly skilled, well-educated workforce with an excellent record in industrial relations. Wage costs are similar to those in most other western European countries, while the social costs of employing staff are often lower.

Overseas executives arriving in London will certainly find that housing costs are high, but that is true of most of the world's great cities.

6. The fact that Britain is not part of the euro currency zone places companies at a disadvantage, particularly when it comes to exporting to other EU countries.

Britain's decision not to become part of euroland was initially seen by some commentators as a potential problem. The reality has proved to be very different.

Figures from the Organization for Economic Cooperation and Development (OECD) show that, since the euro was introduced in 1999, the United Kingdom has outperformed all its major European rivals.

Britain continues to attract more overseas investment than any other EU territory. Unlike euro countries where interest rates are determined by The European Central Bank, interest rates in the United Kingdom are set by the Bank of England, which is free to make decisions purely upon its assessment of what is best for the British economy.

7. It is easier to raise development capital in other countries such as the United States.

Last year the Milken Institute of Capital Access Index ranked the United Kingdom first in the world as a place to raise funds.

The index analyzes the breadth, depth and vitality of capital markets across the globe.

8. The regulatory regime in the United Kingdom can stifle enterprise.

Since the establishment of the famous Lloyd's of London insurance market in the 17th century, the United Kingdom has been at the forefront of financial innovation. Today, London is one of the world's three top financial centres, together with New York and Tokyo.

Recently, a large number of overseas companies, including U.S. corporations, have chosen to list on the London Stock Exchange rather than their domestic exchanges. The reason is a relatively liberal regulatory regime, particularly in the case of the Alternative Investment Market (AIM), the market for smaller and medium-sized companies.

9. Not much happens outside London.

London indeed dominates U.K. business, just as it dominates in other aspects of British life such as the arts.

However, it would be quite wrong to ignore other parts of the country. Over the past 15 years, ambitious regeneration plans have breathed new life into cities such as Manchester, Birmingham and Glasgow. The authoritative Lonely Planet Guide to Britain has described many of these city centers as "unmissable."

10. The United Kingdom is a very crowded country. Wouldn't the quality of life be better in places with more space and a lower density of population?

With some 60 million people in an area little more than half the size of California, the United Kingdom is certainly busy. But England, Scotland and Wales offer beautiful countryside with large areas completely unspoiled.

Moreover, the United Kingdom, and London particularly, is unsurpassed as a leader in the arts, with world-class orchestras, theatres, museums and art galleries. London is unquestionably the world's most diverse city, with every nationality on earth represented among its population. This alone gives it a vibrancy found nowhere else. e