United Business Media (UBM) has announced a change to its corporate structure involving a new holding company in
Jersey and its
tax residence moving to Ireland.
According to the company's statement, the new structure reflects its development into an international business-to-business media and news distribution organisation.
UBM's parent company has traditionally been
tax resident in the UK but the company believes that the long term interests of UBM and its shareholders are best served by the adoption of an international holding company structure that resides in the Republic of Ireland, due to the "less complex system of taxation".
"In contrast, the UK tax system imposes tax on all companies in a worldwide group, and consequently UBM has had to manage the interaction between the UK tax system and the
tax systems of the multiple countries in which UBM operates.
The company's statement explained that this has given rise to both "significant compliance costs" and risks of "inadvertent
tax charges" arising.
The proposals are now subject to shareholder approval and are expected to become effective at the end of June. The restructured group will have the same board and management team, and will be listed on the London Stock Exchange.
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