The government's tax regime could force more British companies that trade internationally to move their tax bases abroad, the director general of the Confederation of British Industry has warned.
Richard Lambert spoke out after publishing and events group United Business Media (UBM) announced plans to move its headquarters to Ireland for
tax reasons.
Both the level and complexity of the corporation tax system in the UK are causing problems for businesses and unless the Treasury is prepared to review its policies, more companies will leave, claimed Mr Lambert.
"The prime issue in this case is the complex UK practice of taxing profits earned abroad once they are remitted to the UK, raising the potential for double taxation," he continued.
Mr Lambert added that this made the UK an unattractive option for companies which are internationally mobile.
UBM's decision to move came less than a fortnight after pharmaceutical group Shires decided its tax residence should switch from the UK to Ireland.
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