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UK firms move to Ireland due to tax

Posted: 01 September 2008

More firms are set to move to Ireland following Henderson Asset Management, relocating from the UK for tax reasons.

UK firms Brit Insurance and Charter have both announced they intend to domicile outside of the UK, citing high levels of corporate tax.

Brit Insurance said this it was "actively considering the issue of tax domicile".
Henderson said it would set up a new holding company in Ireland to keep its tax rate to about 20%. The company has enjoyed the low tax level in recent years which was due to rise to the normal UK corporation tax rate of 28% next year.

Charter will create a new parent company to be registered in Jersey, as part of its plans to move head office and tax base to Ireland. Charter said the decision was motivated by the UK's taxing of overseas subsidiaries' profits even when those profits are not remitted to the UK. It has not paid UK corporation tax since 1999 because less than 5% of its total sales come from Britain.

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