Corporation tax rise returns in another tax U-turn

After it was announced that Kwasi Kwarteng was to be sacked after just 38 days as chancellor, there was yet another tax U-turn announced. The corporation tax rise is back.

The main rate of corporation tax will remain at 19% until 1 April 2023 and then it will increase to 25% for companies with profits over £250,000. 

The 19% rate will become a “small profits rate” payable by companies with profits of £50,000 or less. Companies with profits between £50,000 and £250,000 will pay tax at a marginal rate between the two rates (19% to 25%).