Yet more u-turns today, as Kwasi Kwarteng becomes the second shortest-serving UK Chancellor on record.
This afternoon, Jeremy Hunt became our fourth Chancellor in four months. Prime Minister Liz Truss also announced that the rate of Corporation Tax would, as originally planned prior to the Mini Budget, increase from 19% to 25% on 1 April 2023 for companies making more than £250,000 profit.
Companies with profits of £50,000 or less will continue to pay Corporation Tax at a rate 19%. Companies with profits between £50,000 and £250,000 will pay tax at the main rate reduced by a marginal relief. This effectively means that these companies will pay tax at 19% on the first £50,000 of profits, and 26.5% on the balance giving an effective rate of Corporation Tax of 26.5% on profits arising between those bands.