The rate of corporate tax payable on the profits of a company operating in the UK will rise to 25% from 19% starting in 2023. Chancellor Rishi Sunak said it is "fair and necessary" for businesses to contribute to the economic recovery.
In contrast, it is proposed to reduce taxes for small businesses and to adopt additional tax breaks to stimulate investment.
"The government is providing over £ 100 billion in support to businesses to overcome this pandemic, so it is fair and necessary to ask them to contribute to our recovery," the Chancellor told the House of Commons.
According to Rishi Sunak, the government will maintain the 19% rate for firms with profits of less than £ 50,000, which means that about 70% of UK companies - 1.4 million businesses - will not be affected by the tax hike.
Chris Sanger, head of tax policy at accounting giant EY, said tax increases could be the largest in UK history, at more than £ 17 billion a year, accounting for nearly 60% of total tax increases.