McDonald's moving non-US tax base to UK amid EU row

Fast food giant McDonald's is moving its non-US tax base to Britain from Luxembourg as it battles European Union regulators over its tax affairs.

McDonald's said it chose the UK because of its large workforce in London. Picture: Phil Wilkinson

The group will create a UK-based holding company through which its non-US ­royalties will be routed.

“McDonald’s selected the UK for the location of its new international holding structure because of significant number of staff based in London working on our international business, language, and connections to other markets,” it said.

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McDonald’s said it will pay UK corporation tax on its overseas profits. The group has come under fire from EU officials who are investigating claims that it avoided more than €1 billion (£844 million) in tax through the use of a royalties loophole in Luxembourg.

Last year, the European Commission said the European arm of McDonald’s had paid virtually no corporation tax in Luxembourg or the US since 2009.