Prime Ministerial Statement

This afternoon (14th October), Prime Minister Liz Truss, confirmed that the government will keep the planned increase in Corporation Tax from 19% to 25%. This is another U-turn on the Mini Budget announced by former Chancellor Kwasi Kwarteng announced less than a month ago.

The announcement means that the rate of Corporation Tax rate will increase from the current rate of 19% to 25% from April next year. Companies with profits lower than £50k will continue to pay the 19% rate and Companies with profit between £50k and £250k will pay a tapered rate of tax.

The announcement follows the announcement on 3rd October that the government will not be proceeding with the abolition of the 45p tax rate.

Liz Truss confirmed that newly appointed Chancellor, Jeremey Hunt, will deliver the medium-term fiscal plan at the end of the month.

Contact AJS Account ants Ltd to discuss any of the announcements made and how they may affect you and your business.