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| McDonald's to move non-US tax base to UK | McDonald's to move non-US tax base to UK |
| (35 minutes later) | |
| McDonald's is to move its non-US tax base from Luxembourg to the UK, the company has said. | McDonald's is to move its non-US tax base from Luxembourg to the UK, the company has said. |
| The new holding company will pay UK tax on the royalties the firm receives outside the US. | The new holding company will pay UK tax on the royalties the firm receives outside the US. |
| McDonald's said it had chosen the UK due to the "significant number of staff" it has in London. | McDonald's said it had chosen the UK due to the "significant number of staff" it has in London. |
| The Luxembourg tax affairs of the burger giant are currently under formal investigation by the European Commission. | |
| McDonald's said that the holding company would have "responsibility for the majority of the royalties received from licensing the company's global intellectual property rights outside the US". | |
| A McDonald's spokesman said the shift in the tax domicile for its non-US operations was not to do with obtaining a better rate of corporation tax, but was more to do with making its operations more efficient. | |
| "This unified structure will be administratively simpler and will reduce expenses and enhance flexibility," the firm said. | |
| The office in Luxembourg will remain responsible for the restaurants in that country, but "other functions will transfer to the new UK-based holding company," McDonald's said. | |
| On Tuesday, the European Commission began a formal investigation of Luxembourg's tax deal with McDonald's. | |
| The Commission's preliminary view is that the deal may have breached European state aid rules. | |
| It said that since two tax rulings given by Luxembourg in 2009, a McDonald's subsidiary had effectively paid no corporation tax, despite recording substantial profits - for example, of more than €250m (£210m) in 2013. | |
| The UK's corporate tax rate is currently 20%, and the government plans to cut it to 17% by 2020, the lowest in the G20. |