Taxodus: Another firm set to move to Ireland

August 28, 2008 6:10 PM

In what is becoming an increasingly common event, Henderson Group, one of Europe's largest investment managers, said it was considering moving its tax base to Ireland, which has much lower company taxes. The FT continues:

"Its announcement underlined concerns about the waning competitiveness of the UK tax system, which led to the departure of two multinationals in the spring. Many others are examining their options, including Brit Insurance, which on Wednesday confirmed it was “actively considering the issue of tax domicile”....


"Many multinationals argue that too much of their foreign profit potentially falls into the British tax net under existing anti-avoidance rules. Ireland, which does not apply similar rules, is proving an attractive alternative....


"Heather Self of Grant Thornton, the professional services firm, said asset managers faced particularly uncertainty about how their foreign profits would be taxed.


"Earlier this year, Aberdeen Asset Management, a fund manager, looked at relocating abroad."

At the same time, the Government is having to face down pressure from its own backbenchers to impose a windfall tax on energy companies. Why would you invest in Britain right now?

In what is becoming an increasingly common event, Henderson Group, one of Europe's largest investment managers, said it was considering moving its tax base to Ireland, which has much lower company taxes. The FT continues:

"Its announcement underlined concerns about the waning competitiveness of the UK tax system, which led to the departure of two multinationals in the spring. Many others are examining their options, including Brit Insurance, which on Wednesday confirmed it was “actively considering the issue of tax domicile”....


"Many multinationals argue that too much of their foreign profit potentially falls into the British tax net under existing anti-avoidance rules. Ireland, which does not apply similar rules, is proving an attractive alternative....


"Heather Self of Grant Thornton, the professional services firm, said asset managers faced particularly uncertainty about how their foreign profits would be taxed.


"Earlier this year, Aberdeen Asset Management, a fund manager, looked at relocating abroad."

At the same time, the Government is having to face down pressure from its own backbenchers to impose a windfall tax on energy companies. Why would you invest in Britain right now?

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