The UK is no longer in the top three countries for favourable tax regimes, according to a report on 27 European countries' tax regimes. The study, by the European Private Equity & Venture Capital Association in collaboration with KPMG, compared the tax and legal conditions across the 27 states for limited partners and fund management companies. Britain was forced out of the top three by France, Ireland and Belgium, who achieved the overall highest score. Javier Echarri, EVCA secretary general, said that amidst the current financial turmoil, the need for a strong private equity and venture capital market is 'more crucial than ever.' 'Several European countries have shown good progress in the past two years, in improving the environment for private equity capital. But those countries slipping down the rankings should take this as a wake up call that their long term economic health is in jeopardy,' said Echarri Belgium in particular has risen up the ranks after making changes to its pension fund environment and new R&D incentives. The results also show that the gap between Europe's most and least favourable tax regimes and legal environment has widened substantially.