UK and European allies plan to deal ‘hammer blow’to tax evasion

George Osborne agrees to cooperate with France, Germany, Spain and Italy on exposing shell firms and overseas trusts

Britain and its European allies have announced new rules designed to be a "hammer blow" against tax evasion in direct response to the Panama Papers leak that exposed how the world's richest and most powerful people hide their wealth from tax authorities.

George Osborne announced on Thursday, in partnership with his counterparts from France, Germany, Spain and Italy, regulations that will lead to the automatic sharing of information about the true owners of complex shell companies and overseas trusts.