International heating and plumbing giant Wolseley is prepared to return to the UK provided the Chancellor follows through on his promise to reform the tax regime for overseas corporate earnings.
“We are awaiting the final legislation. The devil is in the detail,” said finance director John Martin today. “We have no political axe to grind. It’s purely and simply about pragmatism.” Wolseley, which earns just 15% of its revenues in the UK, moved its holding company to Switzerland in 2010 to avoid tax on overseas income under the controlled foreign companies tax rules.
In last week’s Budget, George Osborne reiterated his pledge to overhaul the CFC tax regime. Legislation will be put forward on Thursday. Sir Martin Sorrell, chief executive of WPP, has also signalled that the advertising giant will move its tax domicile back from Ireland to the UK if the Chancellor follows through.
Wolseley revealed pre-tax profits in the six months to the end of January of £250 million, up 28%. Revenues were up 3% to £6.84 billion.
Chief executive Ian Meakins said growth prospects in the US, where Wolseley makes 43% of its revenues, were encouraging, but that the outlook for the UK was flat.
It had a 3% like-for-like decline in revenues in the UK, where it trades as Plumb Center, BCG and Bathstore.
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