Tax

On 14th October 2022, Prime Minister Liz Truss announced another U-turn on tax measures introduced by the 23rd September Mini Budget. On a day also marked by the departure of Chancellor Kwasi Kwarteng (and the appointment of his replacement Jeremy Hunt), the Prime Minister confirmed widespread speculation that the increase to the rate of corporation tax would proceed as originally planned, in an effort to calm markets following the turmoil which has ensued from September’s Mini Budget. This means that the headline rate of corporation tax is (once again) expected to rise to 25%, with effect from April 2023.

As one of several measures forming part of the Mini Budget (see Weil’s commentary available here), (former) Chancellor Kwarteng had announced that the rate would be maintained at 19%.

A Medium-Term Fiscal Plan is expected to be delivered on 31st October, so it remains to be seen what further measures may be announced (or undone) by incoming Chancellor Hunt.