To ask Her Majesty's Government what assessment they have made of the impact of planned corporation tax increases on the profitability of small businesses.
31 March 2021
Corporation Tax is payable on companies’ taxable profits. From April 2023 companies with small profits, those companies with profits of £50,000 or less, will continue to pay 19%. That means that c.70% of actively trading companies will be protected from a rate increase.
Marginal relief will be available for companies with profits between £50,000 and £250,000 ensuring that the effective rate of Corporation Tax increases gradually for companies with profits over £50,000, avoiding the distortions which would come with a sharp increase in rate.