Publisher deserts UK tax regime

UBM's CMP unit focuses on business-to-business titles and events

UK publishing and events firm United Business Media has proposed creating a new parent company based in Ireland, where taxes are lower than in Britain.

The 90-year old firm, which owns trade titles Property Week and The Publican, said its reflects that 85% of its profits now come from abroad.

The move comes after drugs giant Shire quit the UK's 28% tax rate for Ireland's 12.5% earlier this month.

It is likely to revive criticism of Britain's corporate tax regime.

UBM said the move - subject to shareholder approval - was also aimed at simplifying its complicated international tax arrangements.

The Treasury cannot ignore this issue or argue that companies are crying wolf Richard Lambert, CBI director-general.

Its international presence has expanded over the past three years though acquisitions and it now operates in 30 countries.

Meanwhile, it has disposed of UK businesses, including Express Newspapers and its investment in Channel Five.

As the UK tax system imposes tax on all companies in a group with global operations, UBM said "it has had to manage the interaction between the UK tax system and the tax systems of the multiple countries" in which the company operates.

"This has given rise to both significant compliance costs and risks of inadvertent tax charges arising," it added.

It hopes that the scheme will be in place by the end of June.

UK tax debate

The Treasury's tax policies have recently come under fire over changes to capital gains tax, and its treatment of non-domiciles.

Tax experts have warned that the UK's corporate tax system is becoming increasingly less competitive compared with other European countries in attracting companies and some fear an exodus.

"Firms are seriously concerned about the high level and rising complexity of taxation in the UK and are increasingly prepared to vote with their feet," said Richard Lambert, the CBI's director general.

UBM said the move would not affect its UK listing on the London Stock Exchange, headquarters or management team and would not result in any job losses.

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