The Prime Minister announced on 14 October 2022 that plans to increase Corporation Tax rates to 25% from April 2023 would be reinstated after they were reversed in the September mini-budget.

The announcement came shortly after the Chancellor, Kwasi Kwarteng, was removed from office and is the second reversal of proposals announced at the mini-budget held on 23 September 2022.

As previously planned, and provided for by Finance Act 2021, from April 2023:

  • Rates will now again increase to 25% for companies with taxable profits above £250,000.
  • Marginal rates will apply where profits are between £50,000 and £250,000.
  • Companies with profits below £50,000 will remain taxable at 19%.

It is estimated that the increase will raise around £18 billion a year.

The new Chancellor of the Exchequer is Jeremy Hunt. He has brought forward his predecessor’s medium fiscal term plan announcement from 31 October 2022 to 17 October 2022 in a bid to steady the financial markets.

Useful guides on this topic

Mini-budget 2022: at a glance
A summary for SMEs and their owners

External link

Government update on Corporation Tax 

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