More companies may flee to escape tax

A TOP accountant has warned that a number of Scottish companies are still threatening to quit the country over the Government's plans for taxing overseas profits.

James Baird, soon to take over as top partner at Deloitte in Scotland and Northern Ireland, says he knows of "three or four" companies in Scotland – which he refused to identify – that are keeping a close watch on developments. So far, only Aberdeen Asset Management has been identified among those Scottish firms monitoring the Government's plans.

Despite a partial climbdown by the Treasury, which has agreed to review the proposal, a number of blue-chip UK companies have warned that they may relocate from Britain if the Government goes ahead with its plans.

Drugs firm Shire ignited the row last month by announcing it would shift its headquarters to low-tax Dublin. Publisher UBM also said it would make the move.

The Government has pulled together a committee of Treasury officials and business leaders, including CBI boss Richard Lambert, to consider the plan. "Yes, there are people looking overseas. The Government has pulled back, but there is still nervousness among corporates. They are wondering if something else is going to happen," said Baird.