Tax Experts Say The Move Is Down To Reduced Tax Rate And Brexit

Tax experts at law firm Irwin Mitchell say the reduced UK tax rate will encourage further investment after McDonald’s plans to move fiscal headquarters for the majority of its non-US operations to Britain.

McDonald’s is going to shift its tax base from Luxembourg to establish a new base in Britain to cover most licensing agreements outside the United States. 

The news follows an EU crackdown on tax deals struck by multinational companies. 

The profits made by McDonald’s will be subject to British tax which has been welcomed by the British government, which is under pressure to preserve economic stability as it prepares to leave the European Union.

Prime Minister Theresa May has pledged to cut corporation tax from 20 per cent to 17 per cent by 2020. 

Andrew Watters, Partner, who leads the Tax Risk Reputation Resolution team at Irwin Mitchell, said: