As part of his ‘Growth Plan’ tax-cutting MiniBudget announced today the Chancellor has scrapped a planned rise in Corporation Tax.
Corporation Tax was due to rise to 25% from April but this has now been scrapped so Corporation Tax will remain at 19%.
The move will likely be welcomed by many businesses.
Chancellor Kwasi Kwarteng said that the Corporation tax rise had been “cancelled” to help companies invest more in growth and job creation.
He wants to see growth, forecast to drop to 0.1% next year, to move up to 2.5% trend growth.
Mr Kwarteng also announced a number of measures today to help business:
These include:
• A package of major cuts to Stamp Duty Land Tax to boost residential investment
• Reversing the planned 1.25% rise in National Insurance contributions
• More relief for businesses by making the Annual Investment Allowance of £1 million permanent, rather than letting it return to £200,000 in March 2023. This gives 100% tax relief to businesses on their plant and machinery investments up to the higher £1 million limit.
• New low tax ‘Investment Zones’ to be set up around the country, potentially up to 38
• An Energy Bill Relief Scheme for businesses to cap costs per unit to provide a discount on wholesale gas and electricity prices
• New measures to unlock private investment by encouraging pension funds to invest in UK assets
• The cap on bankers’ bonuses will be ended
Alcohol duty has also been frozen for another year.
