TaxCorporate TaxDiageo latest to mull offshore move

Diageo latest to mull offshore move

Diageo says it may relocate to a more accommodating tax jurisdiction if the UK's fiscal regime does not improve

Drinks giant Diageo is the latest blue-chip company to threaten a move out of
the UK because of the tax regime.

In the backdrop of the impending 50% top rate of tax Paul Walsh, the FTSE 100
company’s chief exec warned Diageo may relocate to a more accommodating tax
jurisdiction if the UK framework did not improve,
the
BBC reported
.

Diageo would follow multinationals such as WPP, Shire and United Business
Media if it shifts its tax base from the UK.

Francesca Lagerberg head of tax at Grant Thornton said: “Today’s news that
Diageo might leave the UK is a massive blow to UK plc and to the Treasury’s
coffers.

“This is sending a clear signal to HM Treasury that more needs to be done and
urgently to make the UK an attractive place to do business, attract talent and
inward investment.

“With the introduction of the 50p rate of income tax from April for high
earners, the current high level of corporation tax and the increasing regulatory
tax burden in the UK, it is no wonder that yet another large household name
would contemplate leaving.

“Countries with a far more attractive tax jurisdiction such as Switzerland,
Ireland or Dubai must be rubbing their hands right now waiting for this new
influx to arrive.”

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