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 taxation , despite the UK Government changing 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 still avoid the 8 % surcharge that the UK Government is proposing . The bank had hoped to make a final decision before the end of the year but has postponed to early 2016 . Should Toronto, Canada's most populous city, succeed in wooing the bank, HSBC would join other major financial institutions like Royal Bank of Canada there. Hong Kong and the US are also in the frame as alternatives to London .
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 taxation , despite the UK Government changing 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 still avoid the 8 % surcharge that the UK Government is proposing . The bank had hoped to make a final decision before the end of the year but has postponed to early 2016 . Hong Kong and the US are also in the frame as alternatives to London .