Reckitt ponders leaving UK over tax
Reckitt Benckiser has admitted it is examining whether to relocate its tax headquarters abroad in the latest blow to the government's business credentials.
Bart Brecht: The tax situation is not improving for businesses
If the maker of Dettol, Vanish and Nurofen does move to a more favourable tax domicile it will be the most high profile defection to date.
Bart Becht, chief executive of the £20bn FTSE 100 cleaning to healthcare firm, told the Mail: 'Clearly the tax situation in the UK is not improving for companies, let's be clear.
'Not in the corporate tax side or in the personal tax side. It also is becoming more challenging to move people into the UK.
'We always look at that [ moving offshore]. There are ongoing discussions.
'We don't have a solution for the time being. The solution would be for the government to reconsider.'
Reckitt (down 21p to 2764p) joins a long list of firms reviewing their tax affairs amid concern about the onerous UK corporate tax regime.
Holiday Inn-owner InterContinental Hotels has also said it is considering its options.
Others have already joined the stampede to escape crushing new levies put forward by what many see as an anti-business regime, by moving their tax affairs to Ireland instead.
United Business Media and drugs firm Shire are going to Ireland and Experian has already gone.
Many business leaders were infuriated at a government to hit firms that make large slices of profits overseas.
The Chancellor announced changes to the taxation of foreign profits linked to intellectual property rights such as patents and trademarks in this year's Budget.
This led to publishing company Informa to move its tax residency to Switzerland earlier this year. It said it would have ended up paying tax twice.
British headquartered foreign giants have also been affected.
McDonald's said it will move its European headquarters to Geneva joining Kraft, Procter & Gamble, Colgate Palmolive and other large US corporates.
Uncertainty over the tax regime in Britain was a decisive factor behind the move.
One FTSE 100 finance director warned: 'Ministers seem to want to bulldoze their way through things only to realise that this method gets them nowhere.
'My message to government is clear: work with us and not against us.'
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