To ask Her Majesty's Government how they intend to prevent companies leaving the United Kingdom in the light of Europe's intellectual property tax laws. [HL5220]

The Government have committed to reforming the way in which 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, in order to enhance the UK's competitive position while maintaining protection of the UK tax base and, as announced at the last Budget, are currently reviewing the balance of taxation of innovative activity.