UK announces corporate tax hike: What you need to know
On Wednesday, March 3rd, Rishi Sunak, the Chancellor of the Exchequer, announced during the Budget discussions that the British government is raising the corporate tax rate to 25 percent in April 2023 from 19 percent. This is the first time the corporate tax rate has been increased since 1974. Many previous governments took measures to bring down the rate from 28 percent over the past decade. Mr. Sunak said that this difficult decision came as a result of the effects of the pandemic on the country. The country has spent almost £400 billion helping out businesses and workers during the past year. This led to an increase in government borrowing. There were reports that the corporate tax rate will be increased but no expected such a huge increase. “I recognize that they might not be popular, but they are honest.”, said Mr. Sunak.