Number of businesses using tax havens falls 43%

The number of reports of UK businesses being tracked by HMRC for operating without appropriate substance in tax havens such as the British Virgin Islands and the Bahamas has fallen 43% in the past year from 512 to 294 according to new research from international law firm Pinsent Masons.

In recent years HMRC has cracked down on UK businesses operating in territories it believes to be tax havens. As part of the Organisation for Economic Co-operation and Development’s ‘No or only nominal tax jurisdiction’ project it now receives data from 11 jurisdictions if they identify a British company operating in their territory that is failing to meet the minimum standards it must meet to prove it is operating in a country.

Jake Landman partner at Pinsent Masons said: ‘There has been a long-term push to reduce the ability of...