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Concerns about the UK's corporate tax system have again been raised by a major company's decision to leave the country.
Media group UBM's plan has been described as highlighting the 'high level and rising complexity' of British taxation, which is making the UK 'less attractive to internationally-mobile firms'.
The business announced its plan to relocate its tax base in the Republic of Ireland by saying the long-term interests of the company and its shareholders would be best served by the adoption of 'a less complex system of taxation'.
UBM will establish an international holding company corporate structure that domiciles its parent company in Ireland.
The group went on: 'The UK tax system imposes tax on all companies in a worldwide group, and consequently UBM has had to manage the interaction between the UK tax system and the tax systems of the multiple countries in which UBM operates.
'This has given rise to both significant compliance costs and risks of inadvertent tax charges arising.'
The media company's decision follows that of Shire, the pharmaceutical giant that recently announced a similar decision to protect its tax position by way of a move to Ireland.
CBI director-general Richard Lambert warned: 'Firms are seriously concerned about the high level and rising complexity of taxation in the UK and are increasingly prepared to vote with their feet.
'The Treasury cannot ignore this issue or argue that companies are crying wolf.
'The prime issue in this case is the complex UK practice of taxing profits earned abroad once they are remitted to the UK, raising the potential for double taxation.
'This makes the UK less attractive to internationally-mobile firms such as UBM.'
Last month, an independent taskforce commissioned by the CBI published its analysis of the UK corporate tax regime and argued that the system was in need of a radical overhaul if the country is to remain a location of choice for multinational firms.
The report advocated the Government plays a leading role in EU and OECD discussions on further coordination of national tax systems.
