Chancellor George Osborne has laid out plans to raise £12bn by the end of this Parliament through a package of measures to target tax avoidance.
In today’s Budget, the Chancellor said the Government will introduce new measures to tackle disguised remuneration, and make sure UK tax is paid on property development.
The Treasury will seek to introduce capital gains tax on performance rewards and limit exempt gains, as well as introducing new measures to limit the ability of individuals to work as “personal service companies”.
Osborne said: “Public sector business will also gain a new duty to make sure that those working for them pay the correct tax.”
The Chancellor also announced a series of measures to tackle corporate tax avoidance, which he described as a “roadmap to make Britain’s tax system fit for the future”.
For firms making profits over £5m, the ability to use past losses to offset profits will be capped at 50 per cent, with further rules to limit the ability of multi-national companies to borrow in the UK to fund activities abroad.
“This will level the playing field tilted against our small firms,” Osborne said.