Cadbury goes Swiss to avoid British tax: Move by U.S. bosses will cost Treasury £60 million a year

By Dan Atkinson, Mail on Sunday Economics Editor and Jonathan Petre
Last updated at 1:54 AM on 5th December 2010

The US owners of Cadbury are to switch control of the company to Switzerland in a move that could deprive Britain of more than £60 million in tax every year.

The plan has been hatched by food giant Kraft, which took over the iconic British chocolate manufacturer earlier this year after a bitter £11 billion bid battle.

It will see ownership of much-loved Cadbury brands including Dairy Milk, Crunchie and Twirl handed to a holding company in Zurich, where Kraft already has a major base.

Sold: The Cadbury brand was taken over by Kraft who now plan to move control of the company to Zurich to avoid UK tax

The move was greeted with fury, with MPs and industry insiders saying it undermined Kraft’s claims it was committed to the long-term future of Cadbury in Britain.

Business Secretary Vince Cable said: ‘It vindicates those people who warned about the problem
of these takeovers not being in Britain’s best interest.