WPP, the world's second-biggest advertising and marketing group, has confirmed it plans to move its official headquarters from Britain to Ireland because of punitive changes to the British tax regime.

A WPP spokesman told Reuters on Sunday the advertising giant was likely to issue a stock exchange announcement this week on its plans to change domicile.

The decision to move offshore will be a huge blow for the Treasury, particularly as Martin Sorrell, WPP chief executive, has acted as an ambassador for British business.

WPP, who paid ₤204m in UK taxes last year and conducts almost 90% of its business outside Britain, estimates the tax regime changes would add tens of millions to its British tax bill.

Further reading:

Prudential latest to ponder tax exodus

Tax clarity needed to stop businesses leaving the UK