Mobile operator Vodafone is set to announce the sale of its 45% stake in US operator Verizon Wireless for $130bn (£84bn), which would see a large cash boost for the UK economy but not much revenue for the Exchequer, according to reports.

In a statement on Sunday night, the British company confirmed it was 'in advanced discussions' with Verizon over the sale, which would be the biggest corporate transaction for a decade. The sale would be a mix of Verizon common stock and cash.

Analysts suggested Vodafone could distribute $40bn (£25bn) in cash and Verizon shares valued at between $26bn (£16bn) and $34bn (£22bn) to shareholders.

The company is also likely to structure the deal to reduce the tax due, calculated at around $40bn (£25bn), to $5bn (£3.2bn) by selling the US-registered company through which it owns Verizon shares and a number of its European assets to Verizon Communications. The European assets would then be sold back to Vodafone, minimising the tax bill.

Vodafone could also take advantage of the substantial shareholdings exemption, introduced in 2002, which means companies do not have to pay capital gains tax on profits made from selling shares in another firm.