Budget 2018: Hammond targets tech giants with digital services tax

Expects to raise £400m a year

Chancellor Philip Hammond has launched an attack on tech giants such as Amazon and Google by announcing a 2% UK Digital Services tax from 2020.

In today's Budget, Hammond said digital tech giants will be taxed 2% on the money they make from UK users. It is expected this will raise £400m per year, some £1.5bn over four years.  Subject to consultation, the 2% tax will be applied to "specific digital business models where their revenues are linked with the participation of UK users".  This includes search engines, social media platforms and online marketplaces where the business derives "significant value" from the participation of users.  Businesses will need to generate revenues from in-scope business models of at least £50...