UBM criticised over tax move

Date: 29th April 2008

United Business Media's (UBM's) switch to Ireland for more favourable tax conditions has attracted criticism from HM Treasury.

Ireland is an increasingly popular choice for foreign businesses thanks to a highly competitive 12.5 per cent corporate tax rate and an international reputation for high standards in the manufacturing of pharmaceuticals.

Director general of the Confederation of British Industry Richard Lambert recently leant his support to UBM's move, stating: "The Treasury cannot ignore this issue or argue that companies are crying wolf."

The company has long-standing links with the UK government through non-executive director and House of Lords member Adair Turner and the move came as a surprise to a UK Treasury on the verge of reforming British taxation law for foreign companies.

CBI blames the recent spate of companies relocating to Ireland on British tax policies for foreign controlled businesses which leaves companies open to double taxation on profits earned abroad.