Corporation Tax

(asked on 11th March 2021) - View Source

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment his Department has made of the potential effect on economic activity and investment of the corporation tax taper from 2023-24 on profits between £50,000 and £250,000.


Answered by
Jesse Norman Portrait
Jesse Norman
This question was answered on 16th March 2021

The taper on profits between £50,000 and £250,000 is designed to ensure that the benefit of the small profits rate is targeted at the smallest businesses, while at the same time minimising economic distortions for those to which it applies.

Companies with profits within the taper will continue to be subject to an effective tax rate on profit that is below the main rate.

The economic impacts of the Corporation Tax rate increase are forecast by the independent Office for Budget Responsibility and contained within its Economic and Fiscal Outlook.

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