Chancellor George Osborne with Chief Secretary to the Treasury Danny Alexander
Media playback is unsupported on your device

UK tax rules 'tempting overseas business'

11 December 2012 Last updated at 10:24 GMT

Investors in the world's largest advertising agency WPP are expected to approve the firm's proposal to create a new parent company, which will be tax resident in the UK.

WPP was one of several companies which moved their headquarters to Ireland in 2008, in protest at UK tax rules on profits generated overseas.

Since then, the coalition has made changes to the tax regime in the hope of luring companies back to the UK.

Julia Caesar reports.