Analysing Sunak's budget
The spring 2021 Budget introduced incentives to help businesses navigate the COVID-19 lockdown and beyond. Sarah Ghaffari takes a deeper look at key measures, including business tax, VAT, employment taxes, restart grants, recovery loans and the help to grow scheme
There were no surprises when the Chancellor confirmed that the main rate of corporation tax will rise from 19% to 25% in April 2023. While this move alone is set to result in approximately £17.2bn revenue by 2025/26, the UK will still have the lowest corporate rate in the G7. The increased main rate will only apply to companies with annual taxable profits in excess of £250,000, with the 19% rate retained where profits do not exceed £50,000. And if your taxable profits are somewhere in the middle? Scaling relief will be available, meaning marginal relief calculations are no longer a thing of the past. More importantly, tax planning around use of losses will be important.