Labour incompetence in handling the issue of corporation tax has caused the third large company in two days to leave the UK.

Office space company the Regus Group announced yesterday that it was moving its headquarters to Luxembourg to escape the UK, following similar announcements made by the Henderson Group and Charter on Thursday.

Regus said the move was designed to protect its tax position “given the ongoing uncertainty surrounding the UK tax treatment of international groups whose holding company is UK-tax resident.”

The sticking point is Labour’s decision to tax companies on profits made outside the UK. Traditionally, tax law has always been that tax is paid in the country in which it is made. Businessmen with foreign interests now face being taxed in those countries and in the UK.

The decision by Regus comes after Henderson and Charter said they would relocate to the Republic of Ireland. Shire Pharmaceuticals and United Business Media said earlier this year that they were preparing to relocate from Britain.