Shire quits UK over tax
The CBI has raised concerns on the back of announcements that FTSE pharmaceuticals giant Shire, is to quit the UK because of the burdensome tax regime
The Confederation of British Industry has raised concerns about the UK’s
anti-competitive tax regime after Shire announced it would relocate to Ireland
where tax rules are more favourable for business.
Richard Lambert, CBI Director-General, said: ‘We are particularly worried
that an uncompetitive corporate tax system is spoiling the UK’s attractiveness
as a place to do business, and that other internationally-mobile firms will
follow Shire’s path.’
FTSE 100-listed Shire, the third-largest pharmaceutical firm in the UK, is
set to pay significantly less tax by becoming a tax resident in Ireland.
The company re-assured market concerns over the change of residency, saying
the change would not affect Shire’s UK operations or workforce. But this will
mean a loss of income for the Treasury, the Telegraph reported.
A company statement said: ‘Shire has concluded that its business and its
shareholders would be better served by having an international holding company
with a group structure that is designed to help protect the group’s taxation
position, and better facilitate the group’s financial management.’
Further reading:
Shire
quits UK for tax efficient Ireland
Shire
to introduce a new UK-listed holding company
UK in bottom half of best tax regime table