Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment he has made of the effect the £50,000 threshold for the new small profits rate of corporation tax will have on incentives for corporations with profits just below that level to expand their worth.

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, and that only about 10% of companies will pay the full main rate.