Mini Budget 22: Kwarteng cancels corporation tax hike

Remains at 19%

Next year’s planned 6% corporation tax hike will be cancelled as part of a raft of changes to the tax system.

In his first parliamentary statement as chancellor, Kwasi Kwarteng said the government was abandoning the planned tax hike, with corporation tax set to remain at 19% rather than increasing to 25%. This tax cut was somewhat expected by economists ahead of the statement, as Prime Minister Liz Truss had voiced her disapproval with the proposed hike previously. While declaring the Mini Budget, Kwarteng said this cut would give the UK the lowest rate of corporation tax in the G20 and plough almost £19bn a year back into the economy. GDP growth resulting from Mini Budget 'will be offset ...