Budget 2021: Tax on company profits to rise to 25%

[patman post]

What did they expect? The government has propped up business for a year now, are they are saying they didn't expect this?

Exactly. 
And there's the sweetener of a "super-deduction" for companies when they invest, which boosts the amount firms can offset against their tax bill. Under existing rules, for example, a construction firm buying £10m of new equipment could reduce its taxable income for the year by £2.6m. But with the "super-deduction", the company could reduce it by £13m...

[johnofgwent]

The public are not all total fools. They can see big business being taxed a little more on their profits at some future point. But they will also notice if it doesn't happen and other people are hit instead.

Besides which, in view of all the support the government has handed to businesses to protect them and their jobs, it is not unreasonable to ask them to pay a little something back. The higher rates in any case do not kick in for a couple of years, and the smallest 70% of businesses are unaffected. And only the largest 10% will pay the full increase. And CT is a tax on profits anyway. Struggling businesses who aren't making any will by definition pay nothing. And the rules have been made more generous for such struggling businesses to offset losses onto future years for tax purposes. So as far as I can see this measure only hits the big players, and only hits a proportion of profits, whilst struggling businesses get more help.

Far be it for me to defend a Tory measure but this is actually a reasonable and balanced one, and Labour was wrong to ever think of opposing it.

F**k me I'm about to agree with you.


What is this wierd "institute for studies" this Johnson T@@@ hails from anyway ? Who pays HIS salary and what is it.


Under the Tory government in which I launched my freelance career, Mainstream CT was rather more than 25%, tax on dividends was 25% and income tax taxed a lot more because the point it started was a lot lower.


I think the average employee will see the tax take hike itself in the next decade courtesy of NI stealth wage tax, and tax Thresholds standing still far more than companies will.

[srb7677]

It's 2 years away and if the economy is doing well they will not bring it in, it will be dropped back to 20%. In the meantime, the public see that big business is being hit.

The public are not all total fools. They can see big business being taxed a little more on their profits at some future point. But they will also notice if it doesn't happen and other people are hit instead.

Besides which, in view of all the support the government has handed to businesses to protect them and their jobs, it is not unreasonable to ask them to pay a little something back. The higher rates in any case do not kick in for a couple of years, and the smallest 70% of businesses are unaffected. And only the largest 10% will pay the full increase. And CT is a tax on profits anyway. Struggling businesses who aren't making any will by definition pay nothing. And the rules have been made more generous for such struggling businesses to offset losses onto future years for tax purposes. So as far as I can see this measure only hits the big players, and only hits a proportion of profits, whilst struggling businesses get more help.

Far be it for me to defend a Tory measure but this is actually a reasonable and balanced one, and Labour was wrong to ever think of opposing it.

[grumzed]

Yes, it may never happen. But higher CT can have the effect of stimulating greater inward investment in the short term and shrewd corporate investors know this.

Only awarding a 1% increase to NHS staff, at this time, is a much more crass error. The cost of making this say 3% or 4% is trivial compared to the cost of this pandemic. Besides being the right thing to do, it would also go some way to making the government look like they care about the NHS.

[Nick]

I am not saying that
I am not suggesting that the business community is not made up of ungrateful and self centred bastards, but I had assumed that the government knew that and would have the mother wit to do all that it could not to drive investors away.

It's 2 years away and if the economy is doing well they will not bring it in, it will be dropped back to 20%. In the meantime, the public see that big business is being hit.

[Borchester]

What did they expect? The government has propped up business for a year now, are they are saying they didn't expect this?

I am not saying that

What did they expect? The government has propped up business for a year now, are they are saying they didn't expect this?

I am not suggesting that the business community is not made up of ungrateful and self centred bastards, but I had assumed that the government knew that and would have the mother wit to do all that it could not to drive investors away.

[Nick]

What did they expect? The government has propped up business for a year now, are they are saying they didn't expect this?

[Borchester]

What a dickhead

https://www.bbc.co.uk/news/business-56267284