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

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story in the Financial Times