Thames Water, the UK’s largest water and wastewater services firm, will close its two Cayman Islands subsidiaries. The company has appointed former boss of energy company SSE, Ian Marchant, as chairman to review the entire business and to simplify the firm’s nine-company structure. Thames Water, which has not paid corporation tax within the UK for the past decade, said that the subsidiaries offered no tax advantage and were created to raise money for infrastructure investment through bonds. In a statement on Monday, March said: “While we are disappointed by today’s announcement, it is important to recognise that our decision was based solely upon commercial considerations rather than any political considerations.
Thames Water, the UK’s largest water and wastewater services firm, will close its two Cayman Islands subsidiaries. The company has appointed former boss of energy company SSE, Ian Marchant, as chairman to review the entire business and to simplify the firm’s nine-company structure. Thames Water, which has not paid corporation tax within the UK for the past decade, said that the subsidiaries offered no tax advantage and were created to raise money for infrastructure investment through bonds. However, the company’s management has accepted that the use of the subsidiaries “just looks wrong”.