The draft proposals will aim to modify the Controlled Foreign Companies legislation, which taxes UK-based companies on their overseas earnings. Companies, including Sir Martin Sorrell\’s WPP, have left the UK over the tax.
The current CFC rules are illegal under EU law.
As they found out with Cadbury and Vodafone.
And a measure that will please Ritchie and Arnald:
George Osborne is set to announce that even properties bought through offshore companies will be subject to 5pc stamp duty, rather than 0.5pc rate they can currently pay.
Although maybe it won\’t. For what it does show is that the solution has always been in domestic hands, there\’s no need to deconstruct \”offshore\” to get the transactions taxed. So it\’ll be a bit of a mixed bag for them.