Press release

11 Mar 2020 London, GB

Corporate Tax cut gets no reprieve

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Adam Holden

Senior Manager, Media Relations, Ernst & Young LLP

Passionate media relations and public relations professional helping to provide insight and clarity to complex business issues. Husband and father to twin boys, and a golden retriever.

Chris Sanger, EY Head of Tax Policy, comments: “The corporate tax rate was due to reduce to 17% on 1 April but the Chancellor has confirmed – as expected given the commitment in the manifesto – that this rate cut will be abandoned, so that the rate will stay at 19%. By the end of the fiscal period, this gives the Government £7.5bn of extra funds per annum to spend elsewhere.

“Many may be disappointed that the Chancellor hasn’t let the rate cut go forward for at least one year, given the challenges that will be faced in 2020/21 by businesses, be that from covid-19, Brexit, oil price fluctuations or indeed share price fluctuations.”