WPP to shift HQ back to UK

Advertising giant WPP is likely to move its tax base out of Ireland and back to the UK following changes to taxation proposed in yesterday's budget.

"There has to be legislation enacted... [but] I think it looks as though we will make that recommendation," WPP's chief executive Martin Sorrell told BBC radio.

Chancellor George Osborne said he would speed up a planned cut in corporate tax and push ahead with plans to change the taxation of profits earned overseas by UK businesses.

Mr Osborne welcomed WPP's move. "So there you have big companies coming back to the UK instead of leaving the UK and that is going to help us all with the growing economy," Mr Osborne told BBC television.

In his budget speech, Mr Osborne said tax on company profits would be cut by two percentage points to 26 per cent from April, rather than by just the one point originally planned.

A levy on banks would be increased to help pay for it, he said, attracting ire from the banking industry, while Mr Osborne also slapped higher charges on the oil industry.

WPP had moved its tax base to Ireland over what it said was uncertainty over the future of UK taxation policy, and Britain has also had to fight hard to keep its top banks headquartered in London following its bank levy increase.

Last year, British plumbing and construction group Wolseley said it planned to take Swiss tax status.
Other companies which have moved their tax headquarters away from the UK include British business media group Informa, which shifted its tax base to Switzerland, and drugmaker Shire which moved its tax base to Ireland.

Earlier this month, WPP posted higher sales and profits, and said it expected further growth for 2011.

Reuters