A quarter of large UK businesses are thinking of moving some or all of their operations overseas, with the majority of them saying increased tax costs are their reason for wanting to go.
Research carried out for HM Revenue & Customs by accountants UHY Hacker Young also found that 78% of large UK businesses felt that the cost of complying with the country's tax laws had increased over the last year.
The government has cut corporate tax rates recently in an effort to entice big companies to stay in the UK after a string of multinationals moved their corporate headquarters overseas. One high profile company, media agency WPP, has pledged to return as a result.
But this new survey suggests the changes have had little impact on tax compliance concerns more widely.
“Companies look at the total tax burden when deciding where to be based,” said Hacker Young partner Roy Maugham. “Large businesses are clearly still very concerned that the UK is just not competitive enough on tax.”
Maugham added: “Lack of certainty is also a serious concern for large businesses, yet the government repeatedly tinkers with the tax system without any consultation or warning.”