AstraZeneca has informed the government it is not relocating outside the UK, after press reports claimed it would not rule a move out.

The news emerged as speculation continued on which companies might move headquarters abroad because of the government’s approach to corporate tax. Shire has announced it will become tax resident in Ireland, as has United Business Media.

The main point of conflict is the government’s policy on taxing dividends on foreign profits and its clampdown on ‘passive income’ which companies believe will mean huge volumes of extra tax on income earned on intellectual property. Other companies threatening to go abroad include WPP.