WPP set for UK return

WPP Group is set to move its tax base back to the UK following changes to the UK tax regime announced in yesterday’s (23 March) budget.

Sir Martin Sorrell
Sir Martin Sorrell

The global marketing services group, which makes about 90% of its profit outside the UK, moved its tax-base to the Republic of Ireland in 2008 because of concerns over the tax on profits earned from overseas businesses.

Chancellor George Osborne announced yesterday (23 March); however, that corporation tax will be cut by 2 percentage points to 26% from April, up from the 1 point originally planned.

He also said he would press ahead with plans to reform taxation of profit earned by UK-based firms on overseas income.

Sir Martin Sorrell, chief executive of WPP, told BBC Radio’s Today show that as long as legislation is introduced he and the company’s finance and tax bosses would put the proposal to return to the UK to the WPP board for approval.

The majority of WPP staff still work in the UK. WPP -owned agency, insight and marketing services networks such as Ogilvy, Grey, GroupM and TNS employ thousands in the UK.

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