9:00am Wednesday 10th March 2010
By Tim Saunders
Crippling taxes are forcing Lyndhurst-based Ineos, the world’s third largest chemicals company, to consider moving to Switzerland, the company claims.
If the UK’s biggest private company by sales – it sells £32bn of products each year – relocated its head office, it could save £408.5m (450m euros) “between now and 2014”, according to company spokesman Richard Longden.
He said that “ongoing corporate taxes” have forced it to contemplate the move and that “this would protect it from significant levels of additional tax”.
If the headquarters remained in the UK, the rising tax burden would mean that the business would lose out on investment, helping it maintain competitiveness, it claims.
“Ineos will continue to operate in the UK – we are committed to the UK and have eight sites here,” said Mr Longden, adding that the considered move is subject to an internal review, requiring approval from two-thirds of lenders.
“We will continue to pay £70m a year in PAYE (Pay As You Earn) and £550m in VAT (Value Added Tax).”
The manufacturer of petrochemicals, speciality chemicals and oil products employs 170 staff in Lyndhurst and if it did move, the Lyndhurst office “would still continue”, with 20 fewer staff.
In the UK, Ineos employs 4,700 staff (including 1,000 contractors) and 15,500 worldwide across 64 sites in 14 countries. According to Mr Longden it “has come through the recession well” having stabilised its business. Financial performance is expected to further improve.
Ineos operates in industries ranging from pharmaceuticals, automotive to communications. It supplies chlorine that keeps 98 per cent of British drinking water safe, Mr Longden said.
Increasing taxes and red tape have already been blamed for other UK companies fleeing Britain and Unilever, the multi-national, is considering moving operations abroad, it has been reported.
The stockbroker Tullett Prebon, which has 22 offices worldwide, has told staff it will help them relocate to avoid the UK’s uncertain tax regime.
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