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
