PARLIAMENTARY WRITTEN QUESTION
(3 January 2025)

At Autumn Budget, we published our Corporate Tax Roadmap, in which we are capping corporation tax at 25% as well as maintaining Small Profit Rate + marginal relief at their current rate + threshold, and maintaining the Annual Investment Allowance at £1m. As a result of commitments in the Corporate Tax Roadmap, 9 in 10 actively trading companies will have a Corporation Tax rate lower than 25%.

The Government protected the smallest businesses from the impact of the increase to Employer National Insurance by more than doubling the Employment Allowance to £10,500. The Government is also making sure family businesses will receive a very significant level of relief once changes to business property relief have been made, with the first £1 million of business assets continuing to receive 100% relief and then 50% thereafter.

Despite the difficult fiscal inheritance, we have also been able to protect key business support programmes that can be accessed by all small and large family businesses, like the England-wide network of Growth Hubs. We are also allocating £250 million in 2025/26 for small business loans programmes, including Start Up Loans and the Growth Guarantee Scheme.