Multinationals seek advice on relocation after UK tax change

Michael Bow
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MORE than a dozen multinational corporations are in discussions with tax advisers about re-locating to London to reap the benefits of changes to the UK’s tax framework, it was confirmed yesterday.

A number of multinationals have asked accountancy firms to look into plans to transfer their tax status to the UK after reforms to the Controlled Foreign Companies tax regime, included in the Finance Bill 2012, were made law by Parliament last week.

The reforms, which mean UK based firms will pay less tax on non-UK earnings, are set to save companies £840m by 2015-16, according to figures from the Office for Budget Responsibility.

PwC partner Mary Monfries said: “The change is recognising the modern reality of international business activity.

“The fact companies are having these conversations is good news for the UK government’s open for business agenda.”

Firms who have previously indicated interest in relocating back to the UK if reforms were implemented include advertising group WPP.

A spokesman said the CFC reforms should “pave the way” for plans to move WPP back to the UK to be put to the firm’s board and its shareholders at a later date.

In March this year, chancellor George Osborne said: “The aim of our tax reforms is to get multinational companies coming back to the UK instead of leaving it.”

Monfries added companies were “very interested” in the reforms.