The Coalition Government is planning to hand 27 million workers a tax cut in the final Budget before the election by pushing up the income tax personal allowance “towards £11,000”.
The personal allowance was already due to increase to from £10,000 to £10,600 from this April, but the Sunday Times reports the Conservatives and Lib Dems will announce a further increase, to at least £10,800.
Basic rate taxpayers are set to save up to £160 a year from the change, while the Treasury would lose more than £1.3bn if higher-rate taxpayers are also included.
Chancellor George Osborne will also announce that companies diverting profits away from the UK to avoid corporate tax will be hit with a 25 per cent levy. High-profile low tax payers such as Google and Amazon would be caught.
The Chancellor will also force mutinational firms to reveal revenue and profit figures for every country they are active in, for the first time.