Charter Group joins tax exodus to Ireland

ENGINEERING holding company, Charter Group has become the latest British-owned business to announce plans to move its tax base to Ireland as a cost-cutting initiative.

The group said the move would see it benefit from a lower tax rate and lower tax compliance costs than in Britain. Charter has annual revenues of around €1.8 billion.

Tax levies on companies here are about half of what they are in Britain.

Ireland’s corporate tax rate of 12.5% is more than half the rate in Britain, which cut its own rate to 28% earlier this year.

Charter’s announcement follows on from that of British fund management company, Henderson, saying it planned to do the same thing earlier this week.

These companies have been joined by the likes of publishing company, United Business Media, insurance firm, Brit Insurance and pharmaceutical company, Shire.

With as many as 15 British-based companies believed to be looking at switching their tax location to Ireland, millions of extra euro per year could enter the exchequer here.

Henderson, which manages around €70bn in funds, yesterday reported a 16% fall in first-half profits to £50.8m (€63.15m), down from £60.5m for the first half of 2007. Chief executive Roger Yates also announced his intention to resign in November, and he will be succeeded by Henderson’s head of equities, Andrew Formica.

Assets under management at the company fell to £52.6bn from £59.2bn at the end of last year.