Chancellor Philip Hammond plans corporate tax avoidance crackdown to raise over £5billion from UK’s largest businesses

BIG business faces a £5billion bill after the Chancellor yesterday confirmed plans to crack down on tax avoidance by multi-nationals.

Philip Hammond has announced that new restrictions proposed earlier this year on corporate tax relief and tax breaks on historic losses would be “implemented” from April.

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The aim is to stop the taxman missing out when giants shuffle profits to other parts of the world.

Mr Hammond declared: “These measures will help ensure large businesses will always pay tax in years where they make substantial profits.

“They will also mean that businesses cannot avoid tax by borrowing excessively in the UK to fund their overseas activities.

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“They take effect in April and raise over £5billion from the largest businesses in the UK.”

Under the plans, the Government will cap the tax relief a company can claim on debt interest — to stop multinationals loading up their UK businesses with debt to take advantage of generous tax breaks.

It will also introduce a tax on “royalty payments” in a bid to stop firms shunting profits to an overseas subsidiary.