Dyson heading back to UK after moving ownership to Malta in 2009 in move widely seen as measure designed to avoid UK tax
October 6, 2013
(Mail on Sunday)
– JAMES Dyson is bringing his £3billion technology empire - including his famous bagless vacuum cleaners - back to the UK after moving its ownership offshore four years ago.
The original move to Malta in 2009 was widely seen as a measure designed to avoid UK tax, though Dyson declined to comment about it at the time.
Recently filed accounts for Dyson James, a key UK subsidiary, said that the group is to be restructured again this year to bring it back under UK control.
This weekend the company declined to comment on the decision to return to the UK, but the step will be seen by tax campaigners as a sign that businesses have become more sensitive to tax issues.
The move recalls American coffee giant Starbucks' decision voluntarily to pay £20million in corporation tax after an outcry over its tax arrangements.
The Mail on Sunday revealed Dyson's offshore move last year.
The entrepreneur has never explained why he moved his business - which also makes heaters, fans and hand dryers - to Malta, but tax experts speculated that it could have saved him large sums in capital gains tax.
By sending dividends to the Malta company and investing the cash through the offshore business, Dyson would be able to avoid UK capital gains tax on any investment gains, sources said.
There was also speculation that it would also enable Dyson to avoid CGT on an eventual sale of the group - but to avoid the charge fully he would have needed to leave the UK too.
A spokesman for Dyson said: 'Dyson is owned by a UK company which is wholly owned by James Dyson. It paid over £100 million in tax last year.' The Dyson business turned over £1.2 billion last year, posting profits of £364 million, a 19 per cent jump on the previous year.
(c) 2013 Associated Newspapers Company