Starbucks pays £5m UK corporation tax

<p>The coffee chain will pay tax in the UK for the first time in five years.</p>

Starbucks has confirmed it will pay corporation tax in the UK for the first time since 2009 after a public outcry about its finances.

The coffee chain previously insisted it is not profitable in the UK and therefore ought not to pay any corporation tax, but has since backed down.

Starbucks has now handed over £5 million in corporation tax and will pay the same amount again later in the year.

A spokeswoman stated the move comes after the company listened to its customers, adding that the firm is now "undertaking measures to make Starbucks profitable in the UK".

She explained Starbucks will make sure its unprofitable coffee shops are closed or relocated and revealed the company will have a "greater reliance on franchised and licensed stores".

The share price of Starbucks is set to open the day's trading on the Nasdaq exchange at 64.69 later in the day. This is close to the company's 52-week high of 67.48.

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