WPP considered leaving UK over tax

WPP has suggested it might leave the UK for tax reasons and relocating in Ireland for tax purposes.

Sir Martin Sorrell, the FTSE 100 group's founder and chief executive, said that the move could cut the group's £200m tax bill by tens of millions of pounds a year.

The news of the plans came yesterday as Alistair Darling launched a review of the UK tax system’s competitiveness.

The advertising group has said it will decide after examining the Treasury's proposals to tax foreign profits, final details of which are expected in July.

Darling has put together a group of individuals from the private sector to advise on business tax issues.

The review follows decisions by pharmaceutical giant Shire and United Business Media (UBM) to relocate headquarters to Ireland for tax reasons.

Drugs group AstraZeneca is also not ruling out relocation, according to the Financial Times.

KPMG warned yesterday of the 'danger of a bandwagon effect'. John Griffith-Jones, head of KPMG Europe, told the FT that HM Treasury was concentrating on closing loopholes but 'they need to look at this through a corporate lens...the fact is, the shop down the road is selling [business taxation] for less'.

Further reading:

CBI calls for tax rethink to stop multi-national exodus

UBM move angers Treasury