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One third of UK companies consider moving offshore

05 October, 2010

A recent research has shown that one in three UK companies are considering moving offshore due to burdensome corporation tax.

The pressure on the government will rise due to the findings of the research; it will have to consider a complete change of the tax laws, in spite of Labour reducing the burden from 30pc to 28pc in April 2008.

The research showed that about 38% of executives polled at medium and large companies in the UK admitted that they had discussed moving operations offshore to reduce corporation tax. 39% said they thought the tax was "inefficient" and should be replaced.

The Sunday Telegraph revealed that Kingfisher the DIY retailer, was considering moving offshore. The headquarters of Drugmaker Shire has already moved to Ireland and others that have moved their tax bases to either Ireland or Luxembourg are the serviced office provider Regus, the asset management company Henderson and the engineering group Charter.

Experts have pointed out that the government’s failure to drastically reduce its tax system is harming the country's competitiveness.

In a statement, BDO said that changes were necessary given that corporate tax receipts were likely to fall from an average of about 10% of the UK's total tax take over the last 10 years.

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