The Chancellor is set to target executive pensions as part of a crackdown on 'hidden' pay in a Budget aimed at boosting economic growth this week.
George Osborne will target the offshore trusts - dubbed 'efurbs' - saying they are a form of "disguised remuneration", the Times reports.
Closing the pensions loophole will mean the trusts will become subject to income tax at up to 50%.
The Chancellor will this week deliver a Budget designed to kick-start Britain's flagging economic recovery.
Measures expected on Wednesday include:
- A flat rate for non-doms
- Plans to merge income tax and national insurance, easing the administrative burden for all companies
- A bolstering of enterprise investment schemes and venture capital trusts in a bid to boost investment in small and medium-sized businesses
- Funding for 50,000 more apprenticeships, with 8,000 to be placed in small and medium-sized businesses over the next four years
- Up to 20 enterprise zones - just 10 had been expected - with these areas given tax incentives and faster planning decisions
Treasury insiders this weekend told the Times that the Chancellor will also use the Budget to unveil an 'ambitious' and 'Lawson-style' tax reform package, in reference to the Tory chancellor of the 1980s.
However, it is understood Osborne will not set a date for the axing of the 50% income tax rate.
Two global vehicles
'Further plug advice gap'
Must appoint separate CEOs and boards
Advisers do come out well
Will report to Mark Till