Messaging giant Snapchat to make UK main base outside US

Snapchat is reportedly preparing for a US$25bn stock market float

SNAP, the owner of Snapchat, has confirmed it will make the UK its main hub outside the US.

The California-based tech giant, which is reportedly preparing for a $25bn (£21bn) stock market float on Wall Street, said the UK was “a great place to build a global business”.

Its decision sets it apart from the likes of Apple, Google, Facebook and others who have chosen countries such as Ireland for a base in Europe, taking advantage of lower tax regimes.

Snapchat’s announcement follows the move by McDonald’s to switch its non-US tax base from Luxembourg to Britain as the fast food giant faces a battle with EU regulators over tax. 

Meanwhile, Google recently confirmed plans for a new purpose-built UK site – an announcement hailed as a vote of confidence in the UK after the Brexit vote left doubts over its attractiveness for global firms.

Plans to slash UK corporation tax have helped boost Britain’s allure for multinationals.

Claire Valoti, general manager of Snap Group Limited in the UK, said: “We believe in the UK creative industries.

“The UK is where our advertising clients are, where more than ten million daily Snapchatters are, and where we’ve already begun to hire talent.”

The announcement means that revenues from sales in the UK and in countries where Snapchat has “no local entity or salesforce” will be booked through the UK.

Snap currently has more than 75 staff in the UK, with an office in London’s Soho and an additional site nearby to open soon. 

More jobs are expected to be created, including for engineers, though the company sees itself as a lean business and would be likely to play down expectations of major recruitment.

Snapchat, which lets users send photos and short videos which expire within seconds, makes its money from advertising.

It claims more than 150 million daily active global users including more than 50 million in Europe. news.sky.com