Private equity firms looking to make millions of pounds from selling the AA breakdown service have come under attack for the tiny amount of corporation tax its holding company has paid.
Unions and MPs have rounded on the owners of the AA's holding company, Acromas, which also houses Saga financial products, for paying tax of 2.7% on profits since its creation in 2007.
The revelation will spark further outrage about the extent of UK tax avoidance by corporations, which last week saw representatives of Google, Starbucks and Amazon grilled by the public accounts select committee.
UK corporation tax is set at 24% but is expected to fall to 23% next year.
Last week business secretary Vince Cable called on the chancellor to use his autumn statement to "get to grips" with companies that are "systematically abusing" the UK tax system.
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