Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment he has made of the potential merits of increasing corporation tax now for those companies with a higher profit margin during the covid-19 outbreak.

It is right that businesses share in the burden of restoring the public finances to a sustainable footing; that is why the Government announced an increase in the rate of Corporation Tax at Budget. The rate increase will not come into force until April 2023, by which time GDP is forecast to have recovered to its pre-pandemic level.

Companies that have made profits during the pandemic have continued to pay Corporation Tax on those profits as normal. Corporation Tax is charged in line with the level of a company’s profits, so more profitable companies will have contributed more.