Business to Business News

UK tax regimes are finally taking a toll on various companies, and United Business Media, the specialist publishing and events group is the perfect example. After 90 years UBM is abandoning the UK market. They plan on moving operations to Ireland that offers favourable tax regimes. Corporation tax rates in Ireland stand at only 12.5% compared with 28% in the UK. On the other hand, the UK tax system imposes tax on all companies. UBM has a strong hold in its respective industry with operations in more than 30 countries worldwide and with over 85% of profits coming from outside the UK. From Techweb and PR Newswire to the Publican and Property Week, UBM has been growing tremendously with acquisition. Considering its worldwide operations, UBM will profit tremendously from the uncomplicated tax regime in Ireland.

But UBM is not the only company that is taking such a drastic step. Drug Company Shire who moved back to Ireland, this month itself, and Glaxo SmithKline would consider the same unless UK’s business environment undergoes a changes. At present many companies believe that UK market conditions are not conducive to their staying registered here.

UBM’s decision will come as a rude shock to the UK government as one of the Government’s advisors is a part of the UBM board as a non-executive director. UBM aims at creating a new holding Company, based in Jersey that will have its tax center in Ireland.  UBM is currently in the midst of a legal face-off with HM revenue & Customs over a £80 million tax bill pertaining to the company’s disposal of its British reginal paper, way back in 1998. The legal battle has been on now for 10 years.