While a u-turn on corporation tax seems unlikely, there are calls to increase the profit limit to reduce the impact on smaller businesses and more certainty on business tax reliefs and capital allowances
Accountants are concerned about the negative impact of the 6% rise in corporation tax to 25% from April and are calling on the government to rethink how they will support business growth, while there is little faith that the Chancellor will reduce the ever rising personal tax burden.
Toby Ryland, corporate tax partner at HW Fisher, said: ‘It’s unlikely that the Chancellor will scrap the planned increase to corporation tax rates, but he could ease the pain that’s in store for UK businesses from 1 April.
‘This could mean extending the corporation tax band for small companies. Under the current proposals, companies with profits up to £50,000 will continue to pay tax at 19% rather than the new 25% rate.
