Barack Obama has unveiled a sweeping crackdown on offshore tax avoidance by US companies, in a move likely to affect the way Britain taxes profits earned by UK companies operating abroad.

The US president, who campaigned relentlessly on the issue of closing offshore loopholes, said the steps he announced would raise $210bn (£140bn) over 10 years and 'make it easier' for companies to create jobs in Buffalo, New York, rather than in Bangalore, India.

But corporate America reacted with dismay, saying the rules would put US companies at a disadvantage to foreign rivals.

Financial Times