Facebook, Amazon, and Google are going to have to pay a major new tax on their UK sales

Reuters/Peter Nicholls

Britain's Chancellor Philip Hammond.

The UK government announced a drastic change to the way Silicon Valley tech giants such as Facebook, Amazon, and Google are taxed in the UK.

Chancellor Philip Hammond said the UK would tax 2% of the revenue that tech giants make from UK users, in what he said would raise up to £400 million ($512 million) a year for the nation's coffers from 2020.

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