The increase in the main rate of corporation tax from 19% to 25% on 1 April 2023 could lead to a significant reduction in business investment, particularly for SMEs, cautions accountancy firm Azets. Although the main rate will hit companies with profits over £250,000, the scale of the increase together with rising interest rates and inflationary pressures will ‘restrict inward investment opportunities and in turn growth’, says the firm.
The increase in the main rate of corporation tax from 19% to 25% on 1 April 2023 could lead to a significant reduction in business investment, particularly for SMEs, cautions accountancy firm Azets. Although the main rate will hit companies with profits over £250,000, the scale of the increase together with rising interest rates and inflationary pressures will ‘restrict inward investment opportunities and in turn growth’, says the firm.
