Global business flocking to UK after reforms

AS MANY as 60 multinational companies are predicted to shift their headquarters to the UK over the next 18 months, according to new research from accountancy firm EY.

EY says it is now working with 60 companies that wish to relocate global and regional head offices to the UK by the middle of 2015. That number has risen from 40 a year ago, with 20 firms already having made the leap.

“The controlled foreign companies reforms; changes to the headline rate of corporation tax; and a patent box regime that encourages intellectual property ownership, are increasing the UK’s ability to compete for inward investment,” said EY’s head of tax John Dixon, who said the moves could create as many as 5,000 new well-paid jobs – and net the UK more than £1bn in additional annual corporation tax revenues.

“As domestic and international tax policies continue to evolve in response to the ongoing fair tax debate, the challenge will be to ensure that the message remains undiluted and that we continue to build on the momentum,” he added.