Prime Minister Liz Truss has made yet another U-turn in the not so ‘Mini Budget’, this time to Corporation Tax which now, ex chancellor Kwasi Kwarteng, announced back in late-September.
Corporation Tax was due to rise from 19% to 25% in April 2023, but was reversed in a dash to ”ignite growth”.
Truss has announced the reversal will not happen and the Corporation Tax increase will go ahead as planned in April 2023.
Companies with profits up to £50k will continue to pay tax at 19% however, companies with profits between £50k and £250k will pay a rate which gradually increases from 19% up to 25% (A marginal rate of 26.5%).
Truss also announced after the sacking of Kwasi Kwarteng, Jeremy Hunt has stepped up as replacement chancellor and will ”drive her mission to go for growth”.
Hunt is confirmed to deliver a medium-term fiscal plan which is expected to set out the government’s plans on tax and spending towards the end of October 2022.
How we can help
If you have any queries surrounding the increase to Corporation Tax and how this will impact on you or your business, please contact us at mail@seavorchartered.co.uk or 01228 904904.
