The most obvious benefit is that Brits can work in Rome, Geneva, Dublin or elsewhere with ease but manage to stay outside the UK tax net for the most part.

Mr Leung was expected to deal with the issue by casting the tax net wider. But his budget ignored the tax base, tinkering only with duties on wine and other trifles.

Some companies have used corporations formed in the British Virgin Islands or the U.S. U.S. holding companies are usually a poor choice, since this brings the corporate group into the U.S. tax net.