Treasury tight-lipped on business tax forum

Tax policy chiefs are looking to fast track the selection process for membership of a business-government think tank so efforts can get under way to hammer out a better tax regime for British businesses.

The high-level group has now become the key forum for establishing a new tax regime for foreign profits.

The government’s proposals are due to be announced in July, with advisers unclear as to whether a U-turn is in the offing.

The Treasury is keeping its cards close to its chest on its wish list for the forum, but has said that companies are not waiting to be invited and have already made approaches in a bid to try and secure membership.

‘The first meeting will happen at the earliest possible convenience for members,’ a spokesman said.

‘We’ve had a high level of interest from a number of companies which are keen to have a representative on the group. Membership will be made up of senior representatives of multinationals.’

The CBI is also thought to have a berth on the panel.

The forum has been set up as part of moves to appease British companies after leading businesses announced plans to shift their tax bases offshore to escape the UK tax regime.

A further announcement on the make-up of the forum is expected to be rolled out ‘within a couple of weeks’ time,’ a source added.

A host of companies this week suggested they might leave for tax reasons, including WPP and Diageo.
Shire and United Business Media have already outlined plans to move to Ireland.

Cantor Alphabet, the betting firm, is offering odds of 3/1 on WPP being the next firm to up sticks, with BP a surprise at just 4/1. HSBC, which has suggested it could move in the past, is at 7/1, while Diageo is 6/1 to go first.