UK’s Kwarteng Scraps Plan to Raise Corporation Tax to 25%

(Bloomberg) -- Next year’s planned rise in UK corporation tax will be canceled, Chancellor of the Exchequer Kwasi Kwarteng confirmed in his mini-Budget.

Most Read from Bloomberg

• Bank of England Says Paper Banknotes Only Good for One More Week

• Liz Truss’s Historic Gamble With the UK Economy Is Already Unraveling

• ‘Read Putin More Often and Carefully,’ Lavrov Tells UN Reporters

• UK Market Plunge Sparks Talk of Emergency BOE Rate Hike

“The UK’s corporate tax rate will not rise to 25% -- it will remain at 19%,” he told the House of Commons on Friday. “We will have the lowest rate of corporation tax in the G20. This will plough almost £19 billion a year back into the economy.”

https://t.co/ltTy3MUtXY pic.twitter.com/luvf5g7tDv

— Bloomberg UK (@BloombergUK) September 23, 2022

Kwarteng also vowed to permanently keep the annual investment allowance, which gives 100% tax relief on investments in plant and machinery, at £1 million rather than drop it to £200,000 as planned.

Most Read from Bloomberg Businessweek

• US Is Inflating Its Debt Away After Unprecedented Spending Binge

• The Sneaky Genius of Apple’s AirPods Empire

• This Is What Life’s Like in the World’s Strictest Covid Zero City

• To Find Success at Work, Match Your Job With Your Personality

• Wall Street’s Bosses Reassert Themselves With the Return of Annual Culls

©2022 Bloomberg L.P.