Corporation Tax U-turn - as expected
This afternoon the PM announced another mini-Budget U-turn, this time concerning corporation tax. What’s the full story?
Despite numerous assurances that the government would press ahead with its tax-cutting measures in the face of strongly negative political and economic reactions, the Prime Minister has decided to row back on her promise to scrap the forthcoming increase to corporation tax in April 2023. This follows the earlier U-turn on scrapping the additional rate of income tax.
As things stand, the main rate of corporation tax will increase to 25% from 1 April 2023. However, company owners may well feel that they can’t take anything for granted given that there is now significant pressure on the Prime Minister to resign.
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