Osmond to move Pearl outside of UK to lower-tax base

Source: Exec Digital UK

Date :12/05/2008 09:08:51

Hugh Osmond is considering relocating Pearl Assurance, his financial services group, outside the UK, joining a host of other companies who are said to be considering overseas moves.

Speaking to The Times, the serial entrepreneur said that Pearl was already likely to list some if its investment funds offshore.

He said that it would be relatively simple to transfer other functions, including the head office, outside the UK to lower-tax locations, such as Dublin or Geneva.

Tax base

Pearl Assurance is part of a growing list of companies, including WPP, the advertising group, and Aberdeen Asset Management, the fund manager, who are considering moving out of Britain for tax purposes.

United Business Media Plc., the publishing and events group, said last month that it would move its tax base to Ireland. The firm said it will benefit from lower corporation taxes, which stand at 12.5 percent in Ireland, compared to 28 percent in the UK.

Shire, the pharmaceuticals group, has also said that it is leaving Britain.

Treasury review

Companies such as Shell, Experian and Invesco have already revealed plans to move to Ireland and a number of others are considering their options.

A possible move by Pearl will put further pressure on the Treasury to address its treatment of foreign profits.

The government is understood to be preparing revised corporate tax rules. It was reported yesterday that representatives from the TUC would be included in the review, which would include senior business figures, including CBI boss Richard Lambert.

May 12, 2008