Wolseley May Review Domicile Status Once UK Tax Reforms Complete

Wolseley (WOS.LN), the world's largest plumbers and builders merchant by market value, Tuesday said it may review its decision to move its headquarters from the U.K. to Switzerland once the government's plans to reduce the country's corporate tax burden are fully disclosed.

Chief executive Ian Meakins said the company "will keep [its] domicile status under review and, frankly, we'll look at it when we see the legislation."

Wolseley, which overhauled its corporate structure last year to cut its tax burden, is U.K.-listed and incorporated in Jersey but with its tax residence in Switzerland.

Meakins said "the move was about certainty and lower complexity," with worries over the rules on taxation of profits earned abroad a key factor behind the exodus of U.K. firms to Luxembourg, the Netherlands and Ireland.

The U.K. government is set to push ahead with new rules on the taxation of foreign profits and deepen plans to cut the U.K.'s corporate tax rate in an effort to make the country more competitive and lure back tax exiles.

Advertising giant WPP PLC (WPP.LN) could return to the U.K. as a result of the measures, after Chief Executive Martin Sorrell said last week he would propose a switch in headquarters to his board. Media group United Business Media Ltd. (UBM.LN) also said last week it was actively considering a return.

Pharmaceuticals company Shire PLC (SHP.LN), asset management firm Henderson Group PLC (HGI.LN), engineering company Charter PLC (CAE.LN), information and events company Informa PLC (INF.LN) and credit-checker Experian PLC (EXPN.LN) have all featured in recent media reports speculating that they could return to the U.K.'s shores.

-By Michael Haddon, Dow Jones Newswires; 4420-7842-9289; [e-mail]