Bermuda-based Lancashire Holdings is set to move to UK tax residency.

Lancashire decided to move after the latest proposed reforms to the UK's controlled foreign companies (CFC) rules were announced. The reforms will be brought in by the UK Finance Act 2011.

By moving its tax residency, Lancashire expects to qualify for a temporary exemption from the UK's CFC rules.

The company will respond to the government's consultation on the CFC rules, and hopes to ensure the final CFC rules are fair.

Before the move, Lancashire will need shareholder approval for a change in its bye-laws to allow board meetings to be held in the UK.

Lancashire will remain incorporated in Bermuda.


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