Spring Budget 2021: Chancellor hikes corporation tax to 25% from 2023

Personal thresholds remain frozen

Corporation tax will go up to 25% from 2023, but personal tax thresholds will be frozen, Chancellor Rishi Sunak has said in his Budget speech today.

Sunak told the House of Commons the move may not be popular but it was fair as the economy recovers after the Covid-19 pandemic. He added the UK would still have the lowest corporation tax in the G7.  Sunak said the government would create a small profits rate to ensure only firms with profits over £250,000 would be taxed at the higher 25% rate. "That means only 10% of all companies will pay the full higher rate," said Sunak. Corporation tax is currently 19%. Elsewhere, income tax rates were held at current levels until April 2026.  The income tax threshold for paying the basic rat...