London is fast becoming the location of choice for the European Headquarters of international groups, as more and more announce their intention to locate their operations here.
A study by Deloitte found that two in five of the world’s 250 largest companies have already chosen London over other European locations.
There are many factors that make London attractive, but this growing attraction is, in part, due to the business friendly tax changes that have been made to the UK tax system in recent years. Corporation tax has reduced year-on-year since 2008 and is set to further reduce to 20% from April 2015. Furthermore, specific programmes such as the UK Patent Box and Research and Development (R&D) tax incentives provide additional benefits for qualifying activities. The UK’s rate of VAT compares favourably to that of our European neighbours and there are a number of generous tax reliefs for individuals who come and work in the UK.
“From my discussions with many US companies who are exploring the implications of setting up in Europe, the ease of doing business in the UK, the transparency of the tax system and regulatory requirements in general make the UK an attractive place to consider opening an office and establishing a European Headquarters. The number of international companies with a presence in London, coupled with the extensive business opportunities and the breadth and depth of talent makes London an automatic choice for US companies expanding into Europe” Nilesh Shah, Head of Tax at Blick Rothenberg.