Big tech global tax rate will boost coffers

THE Chancellor has been handed a £2 billion-plus boost by the global minimum corporate tax rate that ensures that big tech such as Apple, Google and Facebook pays more to governments.

The Oecd-brokered deal for a 15 per cent minimum rate will begin providing the Exchequer with billions of pounds in extra revenue from 2024.

The Treasury said the global agreement will boost the competitiveness of Britain and protect its revenues “against aggressive tax planning”.

Britain currently has one of the lowest corporation tax rates in the developed world but has still been undercut by the likes of Ireland which has attracted huge multinationals such as Apple with its 12.5 per cent rate.

The UK risks slipping down the tax competitiveness league table next year when corporation tax will jump from 19 per cent to 25 per cent, raising an extra £19billion for the Exchequer.

However, the move to a global minimum rate of 15 per cent will narrow the gap slightly with low-tax rivals.

The OECD deal ensures that countries do not compete with each other in a race to the bottom on tax to attract huge multinationals.