Tax Giveaway to Benefit Millions

09 March 2015

The Sunday Times reports that George Osborne will use the Budget to launch an income tax giveaway for 27m voters.

The coalition is said to be finalising a deal that would raise the level at which people start paying income tax towards £11,000 a year from April, in a bid to win over workers on modest incomes.

The Chancellor is also expected to announce the closure of loopholes used to minimise corporation tax bills. The diverted profits tax will hit companies with a penal tax rate if they are judged to have moved cash overseas to bypass HMRC. Tax will be levied at 25%, compared with the standard 20% corporation tax rate. The chancellor is also expected to force multinationals to disclose revenue and profit figures on a country-by-country basis.

Meanwhile, Enterprise minister Matthew Hancock has suggested that current plans to reduce corporation tax would be extended under the Conservatives. He stated: "Labour wants to put up corporation tax, we want to reduce it because we think it shows that Britain is open for business."