Special 50p coin to commemorate Brexit

Philip Hammond

Philip Hammond

Philip Hammond is set to unveil a commemorative Brexit coin to mark Britain's departure from the EU. "It will be carefully created to ensure that it is established digital tech giants ratter than our tech start-ups that shoulder the burden", he added.

A 2% tax would be applied. The U.K. government expects to generate 400 million British pounds in new tax revenue as a result. He said digital platforms "have changed our lives, our society and our economy, mostly for the better", but that taxation rules "have not kept pace". "It is clearly not sustainable or fair that digital platform businesses can generate substantial value in the United Kingdom without paying tax here with respect to that business", he said.

The new system taxes revenues instead of profits, which companies often record outside the U.K. The tech companies are clear they comply with the letter of the law.

The European Union is considering its own tax on large tech firms, and members of the Organization for Economic Cooperation and Development have sought to form a compromise on taxing digital business across borders by 2020.

Hammond said that he is still committed to global corporate tax reform of these companies but said that progress was "painfully slow", meaning that the United Kingdom will introduce its own tax.