WPP could be set for a sensational return to the UK after boss Sir Martin Sorrell said he will recommend it to redomicile from Ireland following the budget.
He said in an email: “We’ve looked at small print and releases. Subject to draft legislation and enactment we will recommend a return to the UK to the board and shareowners.”
Sources close to the firm told City A.M. the move depends on ensuring WPP will no longer be subject to the double taxation on foreign income that drove it out of the UK in 2009.
He said WPP will wait until the new rules announced by George Osborne on Wednesday are implemented and says it is likely to be 2012 at the earliest before it returns.
WPP, the world’s biggest advertising firm, says the rate of corporation tax is not a material consideration.
Its shares closed up 1.5 per cent at 757p yesterday.