Multinationals avoid tax by moving profits to countries with the lowest rates of corporation tax. By taxing the UK share of global profits rather than UK profits we can close this loophole. The new formula could look like: Corporation Tax = Global Profits x 50% x UK Sales / Global Sales
This also makes the UK a more attractive place to do business because companies can shift profits to the UK (thereby avoiding tax in other countries) without changing their UK tax bill which is based on global profits, not UK profits. As a result, we can increase the tax rate to 50% and still be pro business. The UK would lead a global movement to stamp out tax avoidance.