Shein UK accused of using Singapore parent to cut tax

Shein's UK arm has been accused of transferring the "vast bulk" of its income to its Singaporean parent in order to cut its British tax bill.

- Sarah Butler

The Chinese fast fashion company, which had been considering a £50bn float on the London Stock Exchange but is expected to list in Hong Kong, paid just £9.6m in corporation tax despite taking £2bn in sales last year.

The payment is equivalent to 25% of the £38.3m in pre-tax profits it made in the UK in 2024, according to accounts filed at Companies House, in line with the UK corporation tax rate.

However, campaigners said the bill was low relative to Shein's £2bn sales because about 84% or £1.72bn of the sales figure is transferred to its parent group's Roadget Business Pte Ltd in Singapore as a "purchasing" cost.

"Very little surplus is left in the UK to be subject to corporate income tax," said Paul Monaghan, the chief executive of the Fair Tax Foundation.