Advisers warn of further relocations

Increasingly competitive tax regimes abroad will see a mass exodus of financial services companies relocating their headquarters from Britain.

According to a report in the Financial Times, several industry advisers have warned that recent company announcements are the tip of the iceberg, with many others soon to follow suit.

Parts of Asia in particular have been identified as attractive alternatives luring UK-based companies further afield.

Dana Ward, a financial services tax partner at Grant Thornton, said market opportunities in Asia and the Gulf were forcing asset managers to reassess whether they could remain in the UK.

The Institute of Directors (IoD) said it was vital the Government publish a detailed paper for the multinational tax regime in the pre-Budget report.

The news follows confirmation last week that Henderson, Charter and Regus will all be relocating operations abroad. Brit Insurance, underwriters for Lloyds of London, is also considering a move.