Engineering giant Smiths Group said it would ‘consider’ moving its UK head quarters overseas because of the government’s proposals on taxing foreign profits.

The company, which has 80% of its business abroad, announced it was closely monitoring the Treasury’s plans to tax passive income from overseas subsidiaries.

‘Whilst there is no current intention to move the domicile of the company from the UK, the board is closely monitoring possible changes to UK tax legislation given the very high percentage of profits generated overseas,’ said chief executive Philip Bowman.

He also announced restructuring of the company with 65 job cuts across the group and relocation of the current headquarters in North London.

The Treasury confirmed it had postponed publication of its consultation document on possible changes from July to the Autumn; a sign it is bowing to lobbying pressure.

The tax proposal changes have worried UK multi-nationals with operations abroad and led to United Business media and Shire Pharmaceuticals relocating their HQ from the UK to Ireland which has a tax friendly regime.

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