Taxation: UBM shareholders back return to Britain

Former Daily Express newspaper owner UBM is due to move its headquarters from Ireland back to the UK after shareholders voted in favour of a relocation. The business publisher and events organiser's decision comes less than a month before Sir Martin Sorrell's advertising group WPP puts a similar motion to shareholders.

A handful of UK companies, including UBM, WPP and pharmaceuticals firm Shire, moved to Dublin in 2008 in protest at the prospect of "double taxation" rules on overseas profits.

However, since George Osborne announced plans to change the rules last year, UBM has said it wanted to return to London, where it was founded in 1918 by former prime minister David Lloyd George.

Scrapping the rule will cost the Treasury pounds 2.8bn over five years in lost tax on overseas profits, but ministers are keen to make Britain more attractive for multinationals by easing tax rules. The new rules come into effect in January.

The proposition was put to UBM shareholders yesterday afternoon with near unanimous approval [99.997%]. Lawyers for UBM will finalise the details and the move is likely to take place next week. However, while it may appear welcome news for the Treasury, the company said: "We anticipate no change in reported tax rates or taxation paid as a result of this change in domicile."

Next month WPP shareholders will be asked if they want the company to return to the UK after a four-year absence. Simon Neville