Home Brexit Snapchat sets up new headquarters in Britain in post-Brexit win

Snapchat sets up new headquarters in Britain in post-Brexit win

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The free Snapchat messenging app lets users send photos and short videos which expire within seconds, and makes all of its money from advertising.

Although the tech giant has yet to turn a profit, figures show more than 150 million people use the app daily across the globe, with about half of them from outside the US.

Now Snap, the company behind messaging app Snapchat, plans to move its non-US base to London, claiming the UK was “a great place to build a global business”.

The move is a further boost for Britain’s technology industry following the UK’s decision to leave the European Union.

Claire Valoti, general manager of Snap Group Limited in the UK, said: “We believe in the UK creative industries.

“The UK is where our advertising clients are, where more than ten million daily Snapchatters are, and where we’ve already begun to hire talent.”

Snapchat already has more than 75 staff in the UK, with office in London’s Soho and other building due to open nearby soon.

More jobs are expected to be created – particularly for engineers – although the company has played down rumours of major recruitment.

Revenues from sales in the UK and in countries where Snapchat has “no local entity or salesforce” will now be booked through Britain.

The decision to move its international hub to Britain sets the company miles apart from the likes of Apple, Google and Facebook – who have chosen other European countries for their base to take advantage of lower taxes.

However Snapchat has followed in the footsteps of fast food chain McDonalds, which switched its non-US tax base from Luxembourg to Britain following a row with EU regulators.

The announcement has delivered another vote of confidence in Britain’s technology credentials as the country prepares to leave the European Union.

Many financial services experts warned of an economic crash if Britons voted leave, but instead the country has seen the FTSE soar to new highs.

Andy Haldane, Bank of England economist, admitted some banks had been guilty of scaremongering during the lead up to the UK referendum.

Conceding some bleak Brexit forecasts might be “just scare stories”, he also accepted the economy was not in “crisis”.