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.