AS 2014: Multinationals to pay 25% tax on profits shifted offshore

Chancellor George Osborne has announced a new 25 per cent tax on profits generated by multinationals in the UK that have been “artificially diverted” offshore.

Delivering his Autumn Statement today, Osborne said he wanted to see big global businesses “pay their fair share.”

He has announced that there will be a 25 per cent tax on multinationals where they generate profits from economic activity in the UK which is then “artificially diverted” offshore in a bid to avoid paying UK tax.

Osborne has also revealed a 50 per cent limit on bank profits that can be offset against losses from previous years, so that banks pay an extra £4bn in tax over the next five years.