The Prime Minister (PM) announced to the Confederation of British Industry (CBI) conference on 18 November 2019 that the government would be ‘postponing further cuts in corporation tax’.
That means that the planned reduction from 19% to 17% will not go ahead in April 2020. The PM claimed that cancelling the corporation tax cut would provide the Treasury with extra £6bn to spend on the NHS, which he described as a priority.
The government announced its intention at Budget 2016 to reduce corporation tax to 17% from April 2020 and this latest announcement from the PM means that it should be kept at the current rate of 19%. However it will have to be seen what a new government formed after the December 12th General Election would decide on the matter.
