In a move that's raising eyebrows across financial circles, the Daily Mail & General Trust (DMGT) has quietly shifted significant assets to Gibraltar just weeks before the Chancellor's crucial budget announcement.
The media conglomerate controlled by Lord Rothermere has transferred ownership of its consumer media arm, including the flagship Daily Mail newspaper, to an offshore entity based in the British Overseas Territory. This strategic relocation places valuable intellectual property and digital assets beyond immediate reach of potential UK tax changes.
Timing Raises Questions
The transfer, completed in late February, comes at a particularly sensitive moment as Jeremy Hunt prepares to deliver what could be his final budget before the next general election. Financial experts suggest the move could be a defensive measure against possible tax reforms or increases that might be announced.
"When major corporations make these kinds of moves ahead of budget announcements, it's usually about tax planning," commented one City analyst who preferred to remain anonymous. "The Gibraltar structure provides flexibility and potential tax advantages that wouldn't be available if these assets remained directly under UK control."
Corporate Restructuring or Tax Strategy?
DMGT, which is majority-controlled by the 4th Viscount Rothermere, Jonathan Harmsworth, maintains the transfer is part of ongoing corporate simplification efforts. The company states that the move follows last year's separation of the business-to-business operations from the consumer media division.
However, critics point to Gibraltar's attractive corporate tax regime, which features a standard rate of 10% compared to the UK's 25% main rate. The territory also offers various exemptions and incentives that can make it particularly favourable for holding intellectual property and digital assets.
Historical Context
This isn't the first time DMGT has utilised offshore structures. The company has maintained various international holdings through jurisdictions including Bermuda in the past. The latest move appears to continue this pattern of international financial management.
The development comes as the Daily Mail newspaper itself has frequently campaigned against tax avoidance and criticised companies that use complex offshore arrangements. This apparent contradiction hasn't gone unnoticed by observers of media and corporate ethics.
As budget day approaches, all eyes will be on whether the Chancellor addresses the kind of corporate manoeuvring that DMGT's move represents, and whether other media companies might follow similar strategies in the coming months.
