Tories to drop tax on foreign profits

The Tories are working on plans to exempt companies' foreign profits from tax, it has emerged.

As companies look to leave the UK due to proposed moves to tighten up rules on offshore subsidiaries, the party has hinted it will exempt the profits entirely.

The move comes as part of an effort to overcome fresh evidence revealing business has little faith David Cameron and the opposition can deliver for them.

George Osborne, the shadow chancellor, is expected to tell the annual British Chambers of Commerce conference in Liverpool today that he understands the scepticism shown in a BCC poll but wants the ‘next Conservative government to confound it', Financial Times reports.

Osborne is to argue there is a 'powerful case' for exempting the foreign profits from tax, with a concession worth £700m.

The poll shows only 22% businesses believe the Conservatives would make the needs of business a priority but Labour’s rating is even worse at only 14%, revealing a deep-seated corporate cynicism about politicians’ ability to grasp business needs.

Further reading

Read story in the Financial Times