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UK hikes corporation tax to 25% as pandemic support hits £407 billion

March 3, 2021


LONDON — British Finance Minister Rishi Sunak announced Wednesday that U.K. corporation tax will increase to 25% in April 2023 as the government looks to restore public finances in the aftermath of the Covid-19 pandemic.

In his Budget statement Wednesday, Sunak said the changes would take effect after the Office for Budget Responsibility, a public body that provides independent forecasts, expects the economy to have returned to its pre-Covid level.

“Second, I’m protecting small businesses with profits of £50,000 ($69,816) or less, by creating a Small Profits Rate, maintained at the current rate of 19%,” Sunak told the House of Commons. “This means around 70% of companies – 1.4 million businesses — will be completely unaffected.”

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