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Businesses: Overseas Relocation

Volume 712: debated on Monday 5 October 2009


Asked by

To ask Her Majesty's Government which British companies have moved their domicile to other countries in each of the last three years; and what is the estimated loss of tax revenue from those moves. [HL5139]

The Government are aware of a small number of British companies moving the tax residence of their parent company out of the UK over the past three years. The Government estimate that loss of UK tax as a consequence of these moves will be minimal.

The Government remain committed to enhancing the competitiveness of the UK, and recently announced a reform to the way that the UK taxes foreign corporate profits. From the first of this month, a wide-ranging dividend exemption was introduced which enhances the UK's competitive position, allowing companies, including UK headquarters, to bring profits back to the UK tax-free.

The Government have also committed to reforming the controlled foreign company regime in consultation with business, to enhance the UK's competitive position while maintaining protection of the UK tax base.