UK's largest bank says it could save £400m in tax if it shifts headquarters, according to reports
Accountancy Age, 06 Oct 2006
HSBC says it could save around £400m ($750m) a year in tax costs if it moved its headquarters out of the UK.
Speaking to Bloomberg, an HSBC spokesman said that London and the UK needed to be wary of the burden it placed on business, as it was easy to move headquarters without disrupting core operations. He said making such a move could cut the group's tax bill by £400m
The statement follows Accountancy Age's story this week that HSBC was concerned about the competitiveness of the UK tax system, after comments from the bank's head of financial planning and tax Chris Spooner.
The bank also said today that it would consider its plans in 2008, but stressed that the UK regulatory environment was strong, and that that would be a positive reason for staying here.
At a London conference last week organised jointly by the CIOT, The ICAEW and CFE, Spooner had said that HSBC had been approached by other jurisdictions to move headquarters. He added that the bank was concerned about the competitiveness of the UK tax regime and the competitive environment seriously.
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