Corporate Tax

UK company tax: UK will increase company tax from 19% in 2023 to 25%

LONDON: UK will increase its corporate income tax on the largest and most profitable companies from 19% to 25% by 2023. This is the first increase in nearly half a century, but it will ease the burden of a “super deduction” to stimulate investment.
Treasury Secretary Rishi Sunak, who unveiled his budget in the UK Parliament on Wednesday, said the tax hikes were fair given the huge government support to businesses during the pandemic.
“The government is providing companies with over £ 100 billion in support to overcome this pandemic, so it is fair and necessary to ask them to help our recovery,” Sunak told parliament.
“The UK will still have the lowest corporate tax rate in the G7,” said Sunak. The corporate tax hike – by far the largest tax hike announced by Sunak in the budget – will come from 2023, when the economy is expected to regain its pre-pandemic size. The measure is expected to increase £ 11.9 billion in tax year 2023-24 and increase to £ 17.2 billion in 2025-26. However, the Confederation of British Industry lobby group said the increase would send a worrying signal to investors.

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