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Corporation tax to increase to 25%

by LLB Reporter
15th Mar 23 1:22 pm

Corporation tax for businesses is to increase from 19% to 25%, as planned.

Firms which make a profit of more than £250,000 will pay 25% tax on their profits from April.

Hunt says only 10% of companies will pay the full 25% rate.

Hunt said: “For smaller businesses we have increased the Annual Investment Allowance to £1m, meaning 99% of all businesses can deduct the full value of all their investment from that year’s taxable profits.”

He says he’s also introducing “full expensing”, which for the next three years, with an intention to make it permanent as soon as we can responsibly do so.

He says it means that every single pound a company invests in IT equipment, plant or machinery can be deducted in full and immediately from taxable profits.

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