It appears that Toronto is now in the frame as potential headquarters for HSBC, as it looks at the potential of moving out of London to cut costs and avoid tighter regulation, despite the UK Government altering its plans in an effort to accommodate the bank's demands so as to avoid the embarrassment of such a high-profile defection. The bank had planned to come to a conclusion by the end of the year, though it has pushed the deadline back to early 2016. If it moves to Canada, it will be hit by more corporation tax, but would avoid the 8% surcharge that the UK Government is proposing. The bank had planned to make a final decision before the end of the year but has delayed to early 2016. HSBC said on Tuesday that it was "disappointed" with the UK's decision, which came after months of negotiations between the two countries.
It appears that Toronto is now in the frame as potential headquarters for HSBC, as it looks at the potential of moving out of London to cut costs and avoid tighter regulation, despite the UK Government altering its plans in an effort to accommodate the bank's demands so as to avoid the embarrassment of such a high-profile defection. If it moves to Canada, it will be hit by more corporation tax, but would avoid the 8% surcharge that the UK Government is proposing. The bank had planned to make a final decision before the end of the year but has delayed to early 2016. HSBC said on Tuesday that it was "disappointed" with the UK's decision, which came after months of negotiations between the two countries.