LONDON, Jan. 8 (Xinhua) -- The United Kingdom is one of the most expensive country in the world, from bread, beef, beer to petrol, and even tax, which are forcing many foreign firms to move away.

    Now the government is finally starting to reconsider its 30 percent tax rate on companies.

    It is reported that the Treasury is being forced to consider scrapping corporation tax on foreign dividend income as evidence mounts that overseas multinational companies are shunning Britain in favor of residency in countries with more lenient corporate tax regimes, say tax experts in Britain's leading businesses.

    Even some of British companies like Burberry has been trying to move its factory to China for lower costs.

    Tax experts believe that the Treasury will have to consider fundamental changes to rules on taxation of foreign profits repatriated to holding companies in the UK as Britain's 30 percent rate of tax on companies begins to look "uncompetitive," as the Times put it on Monday.

    Chris Morgan, KPMG's head of international corporate tax, said that his advice to a foreign company seeking the most tax-efficient base would be to eschew Britain. "You'd say, for tax reasons, don't come here," he said. "The headline rate hasn't gone up, but a tightening of anti-avoidance rules [has meant] a rise in the effective tax rates for some companies."

    Chris Sanger, head of UK tax policy for Ernst & Young, said "This has really changed over the last five years -- the big difference now is that people are paying for advice for specific ways as to how they might move."

    Britain has slipped from third-lowest European rate a decade ago to tenth place in 2006.

    Last week, President Chirac said that France needed to reduce its company tax rate from 33 percent to 20 percent, with a long-term target of 10 percent.