Burger HQ moves to UK in a Brexit bun-anza
FAST food giant McDonald’s is moving its financial base from Luxembourg to the UK, it announced yesterday.
The switch was seen as a vote of confidence in Brexit Britain by showing the UK can continue to attract big business as it prepares to leave the European Union.
The company said use of the English language and “connections to other markets” topped its reasons for moving to the UK.
It means McDonald’s will pay tax in Britain on most of the royalties it makes outside the United States – bringing in millions of pounds for the Treasury.
Chloe Westley, of proBrexit Change Britain, said, citing the firm’s advertising slogan: “Today’s announcement shows that McDonald’s is lovin’ Britain.
“It joins a long line of large international companies who have chosen to invest in the UK since the vote to leave the EU.
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“This vote of confidence in the British economy pours cold water on the stories of economic doom we heard from those peddling Project Fear during the referendum campaign, and is further evidence that the UK remains an attractive place to do business.
“Outside the EU’s single market we can strengthen our economy by building a more effective regulatory environment and attract global investors by striking free trade deals with the fastgrowing economies of the 21st century.
“This will create thousands of jobs and help share prosperity right across the country.”
Last night Theresa May’s official spokeswoman said: “We welcome continued investment from companies around the world into the UK particularly where that’s securing growth and increasing jobs.”
In the run-up to Britain’s June 23 referendum McDonald’s warned a vote for Brexit would be damaging and drive up unemployment.
But in July it announced it was creating 5,000 jobs here after franchising bosses made a £600million investment to overhaul Britain’s 1,250 McDonald’s restaurants.
The move comes on top of Facebook pledging last month to create 500 new jobs in the UK, Japanese firm SoftBank’s £24billion purchase of UK computer chip designer ARM and Google’s plans to create up to 3,000 jobs with a new headquarters in the UK.
Car giant Nissan has confirmed it will build two new models at its Sunderland plant.
McDonald’s announcement entails moving its nonUS tax base from Luxembourg next year and comes as it battles EU regulators over claims it avoided more than one billion euros in tax by using a royalties loophole there.
Creating a new office in Britain to process non-US royalties means it will pay UK corporation tax on international profits.
In a statement the firm said: “McDonald’s selected
the UK for the location of its new international holding structure because of significant numbers of staff based in London working on our international business; language; and connections to other markets.
“This change has a clear business rationale in matching our corporate structure to our new functional structure.”
The new holding company will be responsible “for the majority of the royalties received from licensing the company’s global intellectual property rights outside the US” and will pay UK corporation tax on its profits.
A spokesman denied the company was chasing Britain’s comparatively low corporation tax rates – which Chancellor Philip Hammond confirmed last month he wants to cut yet further.
IN A massive vote of confidence in post-Brexit Britain McDonald’s has announced plans to move its non-US tax base here. The fast-food giant has become merely the latest multinational company to signal its belief that this country remains a worldleading place to do business.
The Remain campaign told us that big firms would be fleeing these shores to set up on the continent. Instead companies are falling over themselves to invest here. In the case of firms such as McDonald’s they are even choosing to move operations out of the EU.
Sensible regulation and low taxes are what make an economy competitive, not membership of a failing political union. When Brexit finally happens getting rid of Brussels red tape, cutting taxes and securing new global trade deals will ensure it leaves our economy even stronger.