With a £50bn shortfall looming, the Chancellor may need to revisit last year’s Corporation Tax roadmap commitments.
As this year’s Autumn Budget approaches, it is an interesting time to revisit the Corporation Tax Roadmap published alongside last year’s Budget on 30 October 2024.
The roadmap sets out the government’s plans for Corporation Tax and a small number of other business taxes over the course of the parliament.
These commitments included:
- Capping the headline rate of Corporation Tax at 25% for the duration of parliament, the lowest rate in the G7.
- Retaining the small profits rate and marginal relief at current rates and thresholds.
- Maintaining the capital allowances system, including permanent full expensing and the £1 million annual investment allowance.
- Maintaining the generosity of R&D reliefs.
- Collaborating with companies on simplification and improving user experience, including HMRC’s path forward on digitisation.
- Developing a new process for increasing the tax certainty available in advance for major investments.
Almost a year later, the Chancellor is facing a significant budget shortfall that could be as high as £50 billion, driven by multiple issues including weak growth, persistent inflation, high debt interest costs and widening deficits.
The government has also committed not to raise income tax, National Insurance or VAT for working people, and to restore frozen tax thresholds in line with inflation from 2028–29.
It remains to be seen whether any of the major commitments outlined in the roadmap and in previous promises to the voting public will be rolled back.
by Admin
Share
STAY IN THE LOOP
Subscribe to our free newsletter.
Alternative providers of higher and further education may be able to claim refunds of VAT following a recent Court of Appeal ruling, although the position remains subject to further legal
Cryptoassets can create unexpected tax liabilities. HMRC’s guidance highlights several areas where mistake can be made.
Assuming crypto-to-crypto exchanges are tax-free. Exchanging one type of
HMRC has revealed that it had £42.8 billion in outstanding tax debt at the end of March 2025, equivalent to 5% of total tax receipts. The figures appear in its corporate report, The HMRC tax debt
You may have to pay Income Tax on your pension if your total annual taxable income exceeds your Personal Allowance. This applies whether you receive the State Pension, a workplace pension or a