Another of Liz Truss’ flagship policies was to halt the planned rise in corporation tax rates from 1 April 2023.

These increases will now go ahead. From 1 April 2023, corporation tax will increase to 25% where a company’s profits exceed £250,000 a year. The current 19% rate will however continue to apply where profits are no more than £50,000 a year.

Where a company’s profits fall between £50,000 and £250,000 a year, an effective rate of 26.5% applies to profits in excess of £50,000. Some companies that are connected or in the same corporate group must share these size limits, making the 25% rate more likely to apply.

Even at these higher rates, the UK remains competitive compared to other major trading countries.

This is because many of those are also increasing their corporate tax rates.