One of Europe's largest asset management companies is considering moving its tax base to Ireland.
Henderson Group, which has assets of £54 billion under management, said in a statement that 'it is considering a potential change in its tax domicile from the UK to the Republic of Ireland.'
The company said it would make a full statement at 7am tomorrow and observers expect the company to confirm the move.
If it proceeds it will be the latest in a series of companies which have moved their tax base from Britain to Ireland to cut their tax bills.
In April, Shire Pharmaceuticals caused controversy when it moved its tax base to Ireland so it would pay 12.5% tax on company profits, as opposed to the UK rate of 28%.
The development is deeply concerning for the British government, which is anxious not to lose tax revenue to other countries.
However, it also puts Ireland's low tax base under further scrutiny in Europe.
