Rishi Sunak today said that in 2023 he will raise corporation tax to 25%.
He added that the UK will still have lowest corporation tax in the G7. He also said he is creating a Small Profits Rate to ensure only businesses with profits of over £250,000 will be taxed at the 25% rate.
The chancellor added his corporation tax decisions might not be “popular” but they are “honest” and “responsible”.
He announced that, to boost investment, there will be a “super deduction” in tax for companies that invest in innovation.
“That means only 10% of all companies will pay the full higher rate,” he said.