Brown's tax cuts for big business

Big business will receive tax cuts worth £500 million in the Budget, Chancellor Gordon Brown has revealed.

In an unprecedented move, the Treasury has unveiled details three weeks ahead of the Budget, scheduled for 17 April. The leak is designed to clear up uncertainty before the new tax year. The measures, which kick in on 1 April, were trailed in November's Pre-Budget Report.

They include a tax exemption for sales of significant shareholdings, expected to be worth £150 million a year. There will also be tax relief on the cost of so-called intangible assets, such as patents, worth £200 million at first and rising to £350 million.

There will also be a research and development tax credit for big companies at a rate not set. However, in an apparent slip, the Inland Revenue sent out a press release saying the credit will be paid at 20 per cent. Experts say that would take the total cuts to £1.1 billion.